Malta teaser: will GO go Forth and multiply shares?

Following Greek telco ForthNet’s recent announcement that its EUR30 million (USD37.5 million) rights issue received shareholder approval, its largest shareholder Forgendo, a joint venture between Maltese telco GO and parent Emirates International Telecommunications, expressed its intention to participate in the rights issue. However, the Times Of Malta reports that GO’s share price tumbled after the announcement, reflecting the nervousness among local investors over the possibility of GO advancing further funds to the Greek company and exposing the group to further risk, given the challenging economic conditions in Greece. Meanwhile, ForthNet’s second largest shareholder Cyrte Investments indicated that it is not willing to participate in the rights issue and additionally that it does not intend to retain its current shareholding, which TeleGeography’s GlobalComms Database notes was 25.7% at March 2012, compared to Forgendo’s 41.3% at that date.