BMIT Technologies plc – Acquisition of Subsea Cable Capacity Rights
Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.
On 19 August 2026, BMIT Technologies plc announced that its wholly owned subsidiary BMIT Technologies (Cyprus) Limited entered into a Bilateral Agreement with Cablenet Communication Systems plc for the transfer, by way of novation, of all of Cablenet’s rights, interest, obligations and liabilities under the capacity indefeasible right of use (IRU) agreements which Cablenet holds with the Cyprus Telecommunications Authority (CYTA).
The total consideration was set at €6.92 million which was calculated on the basis of the net book value of the asset as at 30 June 2026. The purchase price will be settled in two tranches, namely a first tranche of €2.6 million payable on the completion date and a second tranche of €4.32 million payable by 31 December 2026.
The asset comprises an IRU representing 5% of the total prevailing capacity of the Arsinoe Submarine Cable System, a high-capacity subsea fibre optic cable system linking Egypt, Cyprus and France which is owned and operated by CYTA, together with capacity currently lit on the Alexandros cable system. The IRU term commenced on 19 February 2022 and expires on 18 February 2047, leaving a remaining term of 20 years and 6 months. BMIT explained that a significant proportion of the system capacity is currently in active use by Cablenet under a long-term service arrangement and that the asset represents an active and revenue generating operation.
Upon completion, BMIT Cyprus will replace Cablenet as a party to the IRU Agreements and will assume full operational control of the asset. BMIT Cyprus and Cablenet will simultaneously enter into a pricing agreement under which Cablenet will continue to use approximately 45.3% of the capacity for its own operational requirements, whilst the remaining 54.7% will be available to BMIT Cyprus for resale to Cablenet or to third parties.
The transfer is conditional on the satisfaction, or where applicable the waiver, of a number of conditions precedent, namely: (i) the execution of the side agreement between Cablenet and CYTA, the novation agreement between Cablenet, BMIT Cyprus and CYTA, and the master services agreement between BMIT Cyprus and CYTA; (ii) written confirmation from Bank of Cyprus Public Company Limited releasing the floating charge over the asset and consenting to the transfer; (iii) corporate approvals from both Cablenet and BMIT Cyprus; (iv) formal clearance from the Cypriot Tax Department confirming that the transfer of the asset constitutes a transfer of a going concern for VAT purposes and is exempt from VAT under Cypriot law; and (v) no breach of warranties having occurred.
The conditions precedent must be satisfied or waived on or before 31 October 2026, or such other date as the parties may agree in writing (the Long Stop Date), failing which the Agreement shall automatically terminate and neither party shall have any further liability to the other, save for any accrued rights and obligations existing at the date of termination. The Agreement is governed by the laws of the Republic of Cyprus and the Courts of the Republic of Cyprus have non-exclusive jurisdiction.
BMIT explained that the profits attributable to the asset are expected to be commercially meaningful and significant from the first year of operation, underpinned by a long-term guaranteed annual service fee payable by Cablenet to BMIT Cyprus for the full duration of the IRU term, which is inflation-adjusted and non-terminable. The company described the transaction as a landmark step which marks its first significant investment and operational presence outside Malta, and expects it to deliver an immediate and significant contribution to revenue and EBITDA. With a local team on the ground in Cyprus, BMIT explained that it will be positioned to extend its portfolio of digital infrastructure and managed IT services to customers in that market, many of which can also be delivered from Malta and therefore require limited incremental operational investment.
BMIT considers Cablenet to be a related party, as both companies are subsidiaries of GO plc. Since the proposed acquisition constitutes a Class 1 Transaction and a material related party transaction in terms of the Capital Markets Rules, it has been reviewed, assessed and approved by the company’s Audit Committee and thereafter by the Board of Directors.
In the interim results published on 5 August 2026, BMIT had stated that it expected to take further steps during the second half of the year towards establishing a presence in a new market. Regional expansion beyond Malta had also been named as one of the three key priorities for 2026 in the commentary to the company’s 2025 Annual Report.
The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.
This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.
The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.
This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.