On 23 August, Forthnet S.A. (in which GO plc has a indirect equity stake through Forgendo Ltd) announced that its shareholders approved all the resolutions on the agenda of the Extraordinary General Meeting (EGM) held on the same day.
The resolutions were as follows:
1) To increase the nominal value of Forthnet shares from €1.18 to €14.16 per share through a 12 for 1 reverse share split thereby decreasing the number of issued shares from 155,431,324 to 12,952,610.
2) Subsequently, to decrease the Company’s share capital by €179,523,179 by reducing the nominal value of the Company’s existing shares to €0.30 per share to form a special reserve of an equal amount. Following this action, Forthnet’s share capital will amount to €3.89 million divided into 12,952,610 shares.
3) To approve a €30 million capital injection through a rights issue of 97,144,575 new shares. Existing shareholders will be eligible to buy new shares at the ratio of 15 new shares for every 2 shares held. Any unsubscribed shares will be offered to third parties at a price not lower than 4 times the Rights Issue Price, which has yet to be established.
4) To authorize the Directors to set the terms and conditions of the rights issue including the issue price within one year.
5) To amend the Article of Associations of Forthnet in accordance with the above.
During the meeting, the largest shareholder of Forthnet, Forgendo Ltd (which is a joint-venture between GO plc and its parent company EITL), expressed its positive intention to participate in the rights issue and maintain its current percentage shareholding in Forthnet.
On the other hand, the second largest shareholder of Forthnet, Cyrte Investments BV, indicated that it will not participate in the rights issue. Moreover, Cyrte also expressed a reservation as to whether it will maintain its current shareholding or not depending on the prevailing economic conditions in Greece and the euro zone in general.