Forgendo Ltd, the investments vehicle jointly owned by Go plc and its major shareholder Emirates International Telecoms, has continued to buy into Greek communications group Forthnet by acquiring a further 1.5 million shares for €2.7 million last week.
The company's buying spree on the Greek Stock Exchange began on June 10; Forgendo's stake in Forthnet has since climbed from 34 to 36.5 per cent.
On June 22, Forgendo bought 500,000 shares, on June 23, 300,000 shares; on June 24, 191,449 shares and on June 25, 500,000 shares. Between June 10 and June 19, Forgendo had acquired another 1.5 million shares in Forthnet for €2.61 million.
By Tuesday, Go plc had made four company announcements on the Malta Stock Exchange with details of the acquisitions.
Market analysts say Go's 8,000 shareholders would be curious to know how many Forthnet shares Go intended to buy, and how the June outlay was being financed. Go plc is known to have significant reserves and a healthy cash flow.
Go plc's recognition of Forgendo's results cost it €15.6 million last year, partly contributing to a loss before taxation of €1.3 million, plunging from a €27.6 million profit in 2007.
Set up in 1995 and listed on the Athens Stock Exchange in 2000, Forthnet enjoys somewhat of a monopoly in the Greek TV market - particularly after recently acquiring Greece's only satellite TV operator Nova - and is expected to capitalise on its commanding position in the internet service providers' sector. It has started to make an operating profit after registering a loss last year.
Forthnet Group turnover for the first quarter of this year amounted to €88.8 million, up from €31 million in the corresponding period this year. Profit before taxes, financing, investing activities and depreciation amounted to €18.2 million.
In the first quarter last year, the group registered a loss of €9.9 million.
Forthnet held the ordinary general meeting of shareholders at its registered seat in Crete on Tuesday.
The meeting approved the financial statements for the year ended December 31, 2008.
It resolved the constitution of a new audit committee made up of non-executive members of the company board, including Go plc director Michael Warrington.
Earlier this month, Forthnet named Go plc director Deepak Padmanabhan as its chairman.
Go plc chairman Sonny Portelli and Mr Warrington retained their posts as non-executive directors.