Emirates International Telecommunications (‘EIT’), a business unit of Dubai Holding, today confirmed its decision to dispose of its 60 per cent shareholding in the leading Maltese telecoms operator, GO plc (‘Go’).
This follows the successful sale of its investments in Interoute, a European Network provider, earlier in 2015, the company said in a statement.
GO, as part of a process to maximize long term value for all its shareholders, is currently undergoing a restructuring process which entails spinning off one of its subsidiaries, Malta Properties Limited, into a separately listed entity. The spin-off was approved by more than 99% of GO Shareholders at an Extraordinary General Meeting, that took place on the 22nd of July. EIT will continue to maintain its shareholding in Malta Properties Limited after the demerger as this is aligned with Dubai Holding’s strategy of focusing on real estate investments.
To avoid any speculation and ensure a smooth functioning of the market, EIT felt it was appropriate to make its intention to divest its shareholding in GO plc, public. EIT has only just started the process of evaluating its options and will adhere to all applicable legal requirements. EIT has not yet approached or identified any buyer for its stake.
In the course of making such evaluations, EIT is and will seek to safeguard the interests of all GO shareholders. Along with GO’s management, Board of Directors and employees, EIT has played an instrumental role in transforming GO into Malta’s leading quadruple play telecommunications provider.
EIT has supported GO’s decision to future proof its communications infrastructure by investing Euros 65 million in projects like 4G networks and Fibre to the Home. With EIT’s support, GO has been delivering substantial shareholder value through strong cash flow generation, healthy dividends and value accretive initiatives such as the spin-off of Malta Properties Limited. Investments in growth opportunities like BMIT, the leading data centre company in Malta, and Cablenet, the fastest growing telecommunication provider in Cyprus, will ensure that GO will continue to deliver shareholder value for a long time into the future.
Deepak Padmanabhan, CEO of EIT and Chairman of GO Plc, said: “All stakeholders in GO, should rest assured that GO is now a modern company, with a strong customer base, leading technology infrastructure, a capable workforce, a robust balance sheet and a well-defined strategy.” EIT is the primary investment vehicle in telecommunications for Dubai Holding. It actively manages stakes in communications companies within the European, Middle Eastern and African markets. EIT has stakes in du, Tunisie Telecom, Axiom Telecom, Go and Forthnet. EIT portfolio management practice is driving value creation at the operating companies' level to generate superior returns for the shareholders.