The biggest shareholder in Go plc, Emirates International Telecommunications (EIT), said today that while it is selling its 60 per cent in stake in the communications company, it will retain its shareholding in Malta Properties Limited, which was hived off from GO last week. It also said no buyer for the GO stake has been identified yet.
The Sunday Times of Malta reported this morning that stockbrokers had raised concerns about the lack of transparency surrounding the news that EIT was selling its stake.
The announcement on Thursday caught many by surprise and caused GO’s share price to slide 10 per cent on Friday.
The Dubai-based EIT, a subsidiary of the State-owned Dubai Holdings, gave no indication of such a move at GO’s extraordinary general meeting held on Wednesday, during which shareholders approved the creation of the new company to absorb GO’s property assets.
Emirates said its disposal of the shareholding GO followed following the successful sale of its investments in Interoute, a European Network provider, earlier this year.
However it would retain its holding in the property company because Dubai Holding’s strategy is focusing on real estate investments.
EIT said it has only just started the process of evaluating its options on the disposal of GO shares and will adhere to all applicable legal requirements.
"EIT has not yet approached or identified any buyer for its stake. In the course of making such evaluations, EIT is and will seek to safeguard the interests of all GO shareholders," it said.
"Along with GO’s management, Board of Directors and employees, EIT has played an instrumental role in transforming GO into Malta’s leading quadruple play telecommunications provider," the company said.
"EIT has supported GO’s decision to future improve its communications infrastructure by investing €65 million in projects like 4G networks and Fibre to the Home. With EIT’s support, GO has been delivering substantial shareholder value through strong cash flow generation, healthy dividends and value accretive initiatives such as the spin-off of Malta Properties Limited. Investments in growth opportunities like BMIT, the leading data centre company in Malta, and Cablenet, the fastest growing telecommunication provider in Cyprus, will ensure that GO will continue to deliver shareholder value for a long time into the future."
Deepak Padmanabhan, CEO of EIT and Chairman of GO Plc, said: “All stakeholders in GO, should rest assured that GO is now a modern company, with a strong customer base, leading technology infrastructure, a capable workforce, a robust balance sheet and a well-defined strategy.”
EIT is the primary investment vehicle in telecommunications for Dubai Holding. It manages stakes in communications companies within the European, Middle Eastern and African markets. EIT has stakes in du, Tunisie Telecom, Axiom Telecom, GO and Forthnet.