GO announced that it has today entered into a share purchase agreement with Cablenet Communications Systems Limited and Mr Nicolas Shiacolas, beneficial owner of Cablenet’s entire issued share capital.

Through this agreement, GO will purchase 25 per cent of Cablenet’s issued share capital from Mr Shiacolas in exchange for a convertible loan of €12 million to Cablenet. At GO’s option, this loan may be converted into equity so that, upon conversion, GO’s total shareholding would be equal to 45 per cent of Cablenet’s issued share capital.

Additionally, the agreement also grants GO the option to acquire majority control of Cablenet in the future.

GO said that Cablenet is a privately owned business which began operations in 2003 as a cable TV provider in Cyprus. It was acquired in 2006 by Mr Shiacolas and since then the company has consistently expanded its network and its operations and was the first Cypriot operator to offer a triple-play package covering TV, fixed telephony and high-speed internet access. Today, Cablenet is the leading privately owned broadband provider in Cyprus and offers packages which include broadband internet access, fixed telephony and digital HD TV to more than 43,000 subscribers.

Mr Yiannos Michaelides, CEO at GO, said, “This investment forms part of our clearly stated strategy of seeking opportunities to grow our business, and shareholder value. As the potential to achieve this in Malta is restricted, we are open to pursuing such opportunities wherever they may be. Cablenet is still a relatively small business but has made great strides in a short space of time and, importantly, has established itself as the provider of premium, high value internet and TV services in Cyprus. Cablenet’s clear potential for further growth in the premium sector, combined with the obvious synergies that exist between GO and Cablenet and between Malta and Cyprus, made this an attractive proposition which we have now decided to pursue.”

“The investment is structured to ensure that the relationship between Cablenet and GO is a long term one which is focused on developing and growing the business. The scale of the investment relative to our balance sheet and healthy cash flows makes, we believe, sound business sense and is one we can sustain. We are fully committed to working hand in hand to deliver on the clear potential of this agreement to generate additional value for all our respective shareholders.”

Mr. Nicolas Shiacolas, Managing Director and owner of Cablenet, said, “Cablenet has consistently proven that it can provide those services most sought by subscribers and has grown substantially since we have taken over control. The strategic investment by GO into Cablenet is both a vote of confidence into what Cablenet can deliver in the future, but also in the prospects of the economy of Cyprus in general. This is now a partnership which we are confident will deliver results for Cablenet and also for GO as we continue to strengthen our position in the Cypriot market.”

The agreement is subject to approval by the relevant regulatory authorities in Cyprus, following which changes to Cablenet’s Board of Directors will take effect. GO will, as part of the agreement, have the option to nominate three directors to the board of Cablenet, as well as appoint the Company Secretary

Cablenet is the only fully independent private telecommunications provider in Cyprus offering broadband, fixed telephony and television services through its wholly owned cable infrastructure. By investing significant amounts, Cablenet has managed to build and operate a remarkable telecommunications network, both nationally as well as abroad. It operates a pioneering Hybrid Fibre Coaxial (HFC) cable network that is fully upgraded to DOCSIS3.0 and can deliver broadband speeds that can exceed 1 Gbps and supports multiple HD TV channels.

Internationally, Cablenet maintains Points of Presence in the most important European interchange cities, with multiple connections between these centers and Cyprus, so as to ensure the protection of services and to optimize data routing.

The high speeds and affordable prices offered by Cablenet result in the best “value for money” packages in the market for broadband access and integrated services. Cablenet’s packages include single-play (TV only), double-play (telephony and television or internet and television) and triple-play (internet, telephony and television). For home use, Cablenet pioneers in broadband connectivity and offers the fastest communication in Cyprus, with internet speeds up to 100Mbps. Cablenet currently provides services to more than 43,000 subscribers.

In addition to home services, Cablenet offers high quality business services that have been developed based on the needs of all levels of business and corporate customers; whether these are small and medium enterprises or large corporations. Cablenet offers an extensive range of broadband internet access products (symmetric or asymmetric optical, coaxial cable, ADSL2+ or SHDSL technologies), Metro Ethernet Point-to-Point and Point-to-Multipoint WAN services both locally and internationally and fixed telephony services. http://cablenet.com.cy

The C.N. Shiacolas (CNS) Group is one of Cyprus’s leading private sector enterprises.

The family owned companies comprising the CNS Group cover a wide range of sectors, with assets both in Cyprus and abroad. Apart from telecommunications, principal areas of activity encompass: Real Estate and Developmen,t Land Ownership, Hotels, Dairy, Agriculture, Furniture, Construction and Construction Materials.

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