GO plc - Forthnet Rights Issue Allotment

On 16 January, GO plc announced the allotment received by Forgendo Limited and its 50% subsidiary Giradena Limited in the rights issue of Forthnet S.A.

Through the exercise of its rights, Forgendo acquired a total of 10,094,535 new Forthnet shares for a total cost of just over €12 million. Forgendo acquired a further 1,034,720 shares in Forthnet through the oversubscription process for a cost of €0.31 million. However, Forgendo will transfer these shares to Giradena which is a joint venture between Forgendo and Massar Investments LLC.

Meanwhile, Giradena also exercised its rights to acquire 2,670,000 new shares in Forthnet at a cost of €0.8 million.

As a result, Forgendo and Giradena cumulatively now hold 49,501,193 shares of Forthnet representing 44.96% of the issued share capital of the Greek telecoms operator.

The announcement also reiterated the agreement between GO and Emirates International Telecommunications Malta Limited (EITML) whereby GO and EITML provide the necessary funding to Forgendo to participate in the rights issue by way of a loan. Furthermore, GO has an option, valid for a six month period starting from 16 January 2014 being the trading date of the new shares, to convert the loan into equity of Forgendo. If GO does not convert its loan into Forgnedo shares within this period, EITML is obliged to repay the GO loan in exchange for additional shares in Forgendo.