GO acquires shareholding in Cablenet

GO plc has entered into a share purchase agreement with Cablenet Communications Systems and Nicolas Shiacolas, the beneficial owner of Cablenet’s entire issued share capital.

GO will purchase 25% of Cablenet’s issued share capital from Shiacolas in exchange for a convertible loan of €12 million to Cablenet. At GO’s option, this loan may be converted into equity so that, upon conversion, GO’s total shareholding would be equal to 45 per cent of Cablenet’s issued share capital.

Additionally, the agreement also grants GO the option to acquire majority control of Cablenet in the future.

Cablenet is a privately-owned business which began operations in 2003 as a cable TV provider in Cyprus. It was acquired in 2006 by Shiacolas and since then the company has consistently expanded its network and its operations and was the first Cypriot operator to offer a triple-play package covering TV, fixed telephony and high-speed internet access.

Today, Cablenet is the leading privately owned broadband provider in Cyprus and offers packages which include broadband internet access, fixed telephony and digital HD TV to more than 43,000 subscribers.

GO chief executive Yiannos Michaelides said: “This investment forms part of our clearly stated strategy of seeking opportunities to grow our business, and shareholder value. As the potential to achieve this in Malta is restricted, we are open to pursuing such opportunities wherever they may be. Cablenet is still a relatively small business but has made great strides in a short space of time and, importantly, has established itself as the provider of premium, high value internet and TV services in Cyprus.

“Cablenet’s clear potential for further growth in the premium sector, combined with the obvious synergies that exist between GO and Cablenet and between Malta and Cyprus, made this an attractive proposition which we have now decided to pursue.”

“The investment is structured to ensure that the relationship between Cablenet and GO is a long term one which is focused on developing and growing the business. The scale of the investment relative to our balance sheet and healthy cash flows makes, we believe, sound business sense and is one we can sustain.  We are fully committed to working hand in hand to deliver on the clear potential of this agreement to generate additional value for all our respective shareholders.”

Shiacolas, owner of Cablenet, said the strategic investment by GO was both a vote of confidence into what Cablenet can deliver in the future, but also in the prospects of the economy of Cyprus in general. “This is now a partnership which we are confident will deliver results for Cablenet and also for GO as we continue to strengthen our position in the Cypriot market.”