Greek incumbent OTE has made a non-binding offer of €250m to €300m (US$342.4m to US$410.9m) for alternative fixed-line operator Forthnet’s pay-TV operations. Barclays is acting as financial advisor for the offer, which is on a debt-free and…
Greek incumbent OTE has made a non-binding offer of €250m to €300m (US$342.4m to US$410.9m) for alternative fixed-line operator Forthnet’s pay-TV operations.
Barclays is acting as financial advisor for the offer, which is on a debt-free and cash-free basis.
The Athens-based telco, in which Deutsche Telekom has a 40% stake plus one share, said a deal would be in line with its strategic priorities, noting that it sees significant growth potential for Greek pay-TV services.
Forthnet said its board of directors will assess the offer and make further announcements in due course.
OTE confirmed last week that it had been in contact with Forthnet’s major shareholder, Forgendo, about acquiring Nova. Forgendo is the vehicle via which Emirates International Telecom (EIT) and subsidiary GO hold their shares in Forthnet.
The move came hot on the heels of Vodafone Greece and Wind Hellas inking an agreement which gives the former the right to exercise an option to boost its Forthnet stake from 6.51% to 19.75% in a year’s time. If the option is exercised, Wind’s holding will fall from 33% to 19.75%, giving the two operators equal stakes. The move has prompted speculation that Vodafone and Wind may join forces to try to take control of Forthnet. The companies have declined to comment on the matter.
OTE 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 €151.93m on the Athens stock exchange, provides broadband, pay TV and fixed-line telephone services.
