GO to acquire majority shareholding in Cablenet in Cyprus

GO plc will acquire a majority shareholding in the Cypriot ‘triple play’ telecommunications company Cablenet Communications Systems Limited, in which it previously held a minority stake.

In September 2014 GO acquired 25% of the issued share capital of Cablenet in Cyprus. GO had also extended Cablenet a loan of €12,000,000 which was convertible into equity and, moreover, obtained an option to acquire majority control should it wish to do so.

GO’s Board have now agreed to proceed with converting the loan to equity, increasing its stake from 25% to 45% of the issued share capital of Cablenet. GO is also exercising the option, included in the original Share Purchase Agreement, to acquire a further 6% of the issued share capital, bringing its total stake to 51%, and thereby acquiring majority control.

Cablenet is a privately owned business which began operations in 2003 as a cable TV provider in Cyprus. Since then the company has consistently expanded its network and its operations. Today, Cablenet is the leading privately owned broadband provider and offers packages which include broadband internet access, fixed telephony and digital HD TV to an increasing number of subscribers.

GO chief executive officer Yiannos Michaelides said: “Apart from bringing us access to a larger market, and new income streams, our increased stake in Cablenet will enable us to leverage clear synergies between GO and Cablenet. Certainly, we will be able to share winning strategies and best practices in a number of areas and we see potential for further growth in a market that, although with its own characteristics, has many similarities to Malta.”

GO Chairman Deepak Pahdmadhaban said GO had a broader, regional vision that included Cyprus as a good fit. “Since our acquisition of a minority stake in Cablenet in 2014, this company continues to perform strongly, delivering steady, double-digit growth in both revenue and EBITDA over recent years. We are therefore encouraged by the significant potential which this asset continues to offer us. The fact that GO is a position to embark on such strategic investments, at this point in its history, makes amply clear GO is a well-capitalised and dynamic entity with a clear forward-looking vision that encompasses not only its core domestic market but further afield. I believe this is good news for all stakeholders.”