Go has bought 25 per cent of the shareholding in Cablenet Communications Systems from Nicolas Shiacolas, the beneficial owner of Cablenet’s entire issued share capital. The acquisition follows the necessary regulatory approval from the Competition Authority in Cyprus.
Go will be acquiring this shareholding in exchange for a convertible loan of €12 million to Cablenet which, at Go’s option, may be converted into equity. Upon conversion, Go’s total shareholding would be equal to 45 per cent of Cablenet’s issued share capital.
Go also has the option to acquire majority control of Cablenet in the future should it wish to do so.
Cablenet is the leading privately owned broadband provider in Cyprus
Cablenet was the first Cypriot operator to offer a triple-play package covering TV, fixed telephony and high-speed internet access, and is now the leading privately owned broadband provider in Cyprus offering packages which include broadband internet access, fixed telephony and digital HD TV to more than 43,000 subscribers.
Yiannos Michaelides, CEO at GO, said: “In March 2014 we had made our initial announcement about our agreement to purchase a shareholding in this operation, which has rapidly established itself as the provider of high-value internet and TV services in Cyprus.’’
“It is our assessment that Cablenet has interesting potential for further growth and we also see synergies between Go and Cablenet and between Malta and Cyprus.
“We believe that by pursuing this growth opportunity we will be able to generate further value for all our respective shareholders.”
Go will be appointing Mr Michaelides, Nikhil Patil and Edmond Brincat to Cablenet’s board of directors.