Greek incumbent OTE has had “preliminary contacts” with alternative fixed-line operator Forthnet’s major shareholder about acquiring its Nova pay-TV operations. OTE, in which Deutsche Telekom has a 40% stake, said in a bourse filing today that it…
Greek incumbent OTE has had “preliminary contacts” with alternative fixed-line operator Forthnet’s major shareholder about acquiring its Nova pay-TV operations.
OTE, in which Deutsche Telekom has a 40% stake, said in a bourse filing today that it is reviewing all business options in the pay-TV arena, which it considers to have growth potential, and is in talks with Forgendo, which has a 44% stake in Forthnet, in this context.
Forgendo is the joint venture via which Emirates International Telecom (EIT) and its subsidiary Go hold their Forthnet shares.
Asked at OTE’s AGM yesterday to comment on the company’s reported interest in Forthnet, CEO Michael Tsamaz said: “We wouldn’t be doing our job right if we were not exploring and evaluating all new developments”.
He also noted at the AGM that the Greek telecoms market “appears to be heading towards two or three players”.
“History has proven that a consolidated market with a few solid and healthy competitors is much more effective than a fragmented market,” he said, adding that strict regulation is no longer needed.
Earlier this month, Vodafone Greece and Wind Hellas signed an agreement which gives the former the option to acquire a 13.25% stake in Forthnet from the latter in a year’s time, prompting speculation that they may join forces to take full control of the smaller operator. If Vodafone exercises the option, its Forthnet stake will rise from 6.51% to 19.75%, while Wind’s will drop from 33% to 19.75%. A Wind spokesperson declined to comment on reports that the company and Vodafone might try to take control of Forthnet together.
Wind boosted its stake in Forthnet from 5.2% to 33% last December, while UK-based Vodafone has sought to add to its mobile operations in Europe by acquiring fixed-line assets.
OTE’s Cosmote is Greece’s largest mobile operator, followed by Vodafone and Wind respectively. 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, which has a market capitalisation of €144m (US$196m) on the Athens stock exchange, provides broadband, pay TV and fixed-line telephone services.
