Vodafone Greece and Wind Hellas have signed an agreement that gives the former the option to boost its stake in alternative fixed-line operator Forthnet, prompting speculation that the two mobile operators will join forces to take full control of the…
Vodafone Greece and Wind Hellas have signed an agreement that gives the former the option to boost its stake in alternative fixed-line operator Forthnet, prompting speculation that the two mobile operators will join forces to take full control of the smaller player.
The agreement, dated 4 June, grants Vodafone the option to acquire 14.58 million ordinary shares – a 13.25% stake – in Forthnet from Wind in a year’s time, according to a Forthnet statement.
If Vodafone exercises the option, its stake will increase from 6.51% to 19.75%. Wind, which has about a 33% stake in Forthnet, will also have a 19.75% stake.
Greek media have speculated that the mobile operators will work together to persuade 44% shareholder Emirates International Telecom (EIT) to sell up.
A Wind spokesperson confirmed the details of the agreement with Vodafone but declined to comment on whether the two companies will work together to take control of Forthnet, or provide further details. Vodafone was not immediately available for comment.
Wind and Forthnet discussed “a potential consolidation of business activities” previously, but called off the talks in January 2013, saying they had proved inconclusive. Last December, Wind exercised an option to boost its stake in Forthnet from 5.2% to about 33%. Meanwhile, UK-based Vodafone has sought to add to its mobile operations in Europe by acquiring fixed-line assets.
Vodafone and Wind are Greece’s second and third largest mobile operators respectively after OTE’s Cosmote. Vodafone and Wind discussed a potential merger in the past, but abandoned talks in early 2012. The companies signed a 2G and 3G network sharing agreement in mid-2013.
Forthnet provides broadband, pay TV and fixed-line telephone services.
