Emirates International Telecommunications yesterday formally announced its decision to dispose of its 60 per cent shareholding in Go plc, saying no buyer had yet being approached or identified.
EIT, a business unit of Dubai Holding, said it felt it was “appropriate” to make its intention to divest its shareholding in Go public to “avoid any speculation and ensure a smooth functioning of the market”. The intention to sell announcement was made on Thursday.
It said it had just started the process of evaluating its options and would 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 in a statement released late in the afternoon.
It noted that its decision to sell its 60 per cent stake in Go followed the successful sale of its investments in Interoute, a European network provider, earlier in 2015.
EIT said that, as part of a process to maximise long-term value for its shareholders, Go was undergoing a restructuring process that included spinning off one of its subsidiaries, Malta Properties Limited, into a separately-listed entity.
is was approved by more than 99 per cent of Go shareholders at an extraordinary general meeting last Wednesday. EIT will continue to maintain its shareholding in Malta Properties Limited after the demerger as this is aligned with Dubai Holding’s strategy of focusing on real estate investments.
The company said that, along with Go’s management, the board of directors and employees, EIT played “an instrumental role” in transforming Go into Malta’s leading quadruple play telecommunications provider.
EIT pointed out it had supported Go’s decision to future proof 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, “ EIT said.
EIT’s chief executive and Go chairman Deepak Padmanabhan said that all stakeholders should rest assured that Go was now a modern company, with a strong customer base, leading technology infrastructure, a capable workforce, a robust balance sheet and a well-defined strategy.