The Go board has decided to exercise its option to convert into equity the interest-free loan it made to Forgendo last January, which was used by Forgendo to take part in the €30 million share capital increase in Forthnet.
Go is a 50 per cent shareholder in Forgendo, along with Emirates International Telecommunications Malta (EITML). Forgendo started investing in Forthnet in 2008
In January, Forgendo exercised in full its pre-emption right as an existing shareholder of Forthnet and also exercising its oversubscription right to ensure that Forgendo retained control of Forthnet.
Had Go decided not to convert its loan into equity after the stipulated six-month period, EITML would have been obliged to repay the outstanding amount due to Go.
There is currently a bidding war underway for control of Forthnet. Vodafone-Panafon SA (Vodafone Greece) has been granted an option to acquire 14,584,853 shares of Forthnet currently held by Wind Hellas Telecommunications SA which would increase its shareholding to 19.75 per cent from 6.51 per cent.
Meanwhile, the shareholding of Wind Hellas would decrease to 19.75 per cent.
However, Greek incumbent operator Hellenic Telecommunications Organisation (OTE) is considering making a €250-€300 million bid for the whole of Forthnet.