Vodafone and Wind Hellas interested in Forthnet acquisition

Vodafone Group and Wind Hellas Telecommunications S.A. have submitted a joint, non-binding proposal for the acquisition of Forthnet sahres, GO plc has announced.

GO has an indirect investments in the Greek telecommunications firm via holding company Forgendo Ltd.

Forgendo is equally owned by Go plc and Emirates International Telecommunications Malta Ltd (EITL) – Go’s majority shareholder.

GO and EITL commenced investing in Forthnet in 2008 and they purchased additional shares in the following three years.

Forthnet ran into severe financial difficulties largely due to the excessive borrowing that was taken out to acquire the pay TV business which took place shortly after Go and EITL first invested in Forthnet.

Forthnet required a fresh capital injection with a €30 million rights issue taking place in December 2013.

GO has provided funding to Forgendo for its 50 per cent stake through an interest-free loan of €6 million which may be converted into shares of Forgendo within a 6-month period from January 16, 2014.

GO and EITL, through Forgendo and another holding company, currently hold just under 45 per cent of the total issued share capital of Forthnet.