Go plc's vehicle raises stake in Forthnet to 37%

Go plc's special purposes vehicle Forgendo, jointly owned with its major shareholder Emirates International Communications, has invested €1.7 million in Greek telecom company Forthnet in July to raise its stake to 37.1 per cent.

In June, Forgendo invested €5.3 million to acquire shares on the Greek Stock Exchange. Go plc has made four announcements on the Stock Exchange since July 3 detailing Forgendo's spend on a further one million shares in Forthnet.

On Tuesday, Forthnet announced that Emirates International Communications now held 37.1 per cent in the company. Before the buying-spree began in June, Forgendo's stake in Forthnet was 34.6 per cent. The development has also made online headlines in recent days. Forthnet is the only premium pay-TV operator in Greece and the largest alternative telephony, internet and video operator in the Greek market.

Sources say Go plc's 8,000-plus shareholders are expressing increasing interest in Forgendo's Forthnet buy-in. Forthnet has shown some positive results this year; in 2008 Go plc's recognition of Forgendo's results cost it €15.6 million.

Emirates International Communications, a joint venture between Tecom Investments and Dubai Investment Group, has a mandate to grow shareholder value by investing in telecoms globally. It has a 60 per cent stake in Go plc.