GO plc is to acquire a majority shareholding in the Cypriot ‘triple play’ telecommunications company Cablenet Communications Systems Ltd.

In September 2014, in line with its strategy to pursue growth opportunities, GO had acquired 25 per cent of the issued share capital of Cablenet. GO had also extended it a loan of €12 million which was convertible into equity and, moreover, came with an option to acquire majority control.

GO’s board has now agreed to proceed with converting the loan to equity. As a result of this, GO’s stake will increase from 25 per cent to 45 per cent of the issued share capital. GO is also exercising the option to acquire a further six per cent, bringing its total stake to 51 per cent, thereby giving it majority control.

Cablenet is a privately-owned business which began operations in 2003 as a cable TV provider in Cyprus. 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.

Yiannos Michaelides, CEO at GO, 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.’’

Deepak Padmanabhan, GO’s chairman, said: “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 in a position to embark on such strategic investments, at this point in its history, makes it 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. ’’