Dubai to sell GO stake, but retain shareholding in property spin-off

GO plc’s main shareholder Emirates International Telecommunications (EIT), a business unit of Dubai Holding, today confirmed its decision to dispose of its 60% shareholding in the Maltese telecoms operator.

The official announcement follows the successful sale of its investments in Interoute, a European Network provider, earlier in 2015.

GO is currently undergoing a restructuring process which includes listing new subsidiary Malta Properties Limited, into a separate entity.

EIT will continue to maintain its shareholding in Malta Properties Limited after the demerger. The company said this was “aligned with Dubai Holding’s strategy of focusing on real estate investments.”

“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.”

News of EIT’s disposal was only made public during the last GO annual general meeting, when an HSBC Malta representative put a speculative question to GO directors on EIT’s intention.

EIT has stakes in du, Axiom Telecom, Tunisie Telecom, Forthnet and formerly Interoute, and serves as the primary telecoms investment vehicle for Dubai Holding – the global investment company owned by Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum. Malta Properties Limited (MPL) will be a separate, publicly-listed entity focused on the property management of various parcels of land devolved to it by the government.

Based on a recent report carried out by firm Architecture Project, MPL’s property portfolio, covering 11 different sites, is valued at nearly €53 million.

“The spin-off of MPL will allow GO to focus on its main business of communication while MPL focuses on maximising long-term value for our shareholders from the Company’s extensive property portfolio,” MPL chief executive Nikhil Patil said.

As a result of the MPL spin-off, all GO shareholders will receive exactly the same number of shares in the new entity as they currently own in GO.

GO plc chairman Deepak Padmanabhan said all GO stakeholders 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.”