EIT increases Forthnet stake to 34%

Dubai: Emirates International Telecommunications (EIT), the primary investment vehicle in telecommunications for Dubai Holding and GO of Malta, 60 per cent owned by EIT, have increased their stake in Greece's leading alternative broadband operator Forthnet to 34 per cent.

The investment - made through their special purpose joint venture Forgendo - takes the total investment in Forthnet to Dh1.1 billion.

The stake hike follows the Forgendo's acquisition of a 21 per cent stake in Forthnet earlier this year. This allowed Forthnet to purchase NetMed, which owns the Nova brands in Greece and Cyprus, the only premium pay TV operators in their respective markets.

Growth

"By increasing our total stake to 34 per cent, we are well positioned for strong growth in both broadband and pay-TV. This allows Forthnet to make unique and attractive triple pay offers in the Greek market," said Deepak Padmanabhan, CEO of EIT.

Forthnet, listed on the Athens Stock Exchange, is the largest alternative telephony, internet and video operator in Greece.

Forthnet raised capital for the NetMed acquisition in part through a successful three-for-one rights issue.

"The rights issue elicited strong support, with more than 89 per cent of the shareholders responding positively," said Pantelis Tzortzakis, Forthnet's CEO.