Vodafone Group made a joint bid with Wind for Greek cable TV provider Forthnet as it continues to develop its quadplay strategy and build on acquisitions in Germany and Spain.
The two companies made a non-binding offer for the shares not already owned by Wind, indicatively offering between €1.70 and €1.90 per share, according to a bourse filing by Forthnet.
The offer from Vodafone and Wind values Forthnet at between €187 million and €209 million, according to Thomson Reuters data.
Vodafone acquired an option to increase its 6.5 per cent stake in Forthnet to 19.75 per cent in June. Wind and Vodafone own 39 per cent of Forthnet between them, according to Reuters.
Forthnet has suffered due to fierce competition and economic conditions in Greece, reporting net losses for the past nine years according to Thomson Reuters Eikon data.
But Vodafone could benefit from acquiring the company to better compete with Deutsche Telekom-owned OTE, its main rival in Greece. Forthnet operates the Nova TV subscription service, which would enable the operators to boost their market share and increase revenue from customers.
OTE made a non-binding bid of up to €300 million for Nova in June, according to Reuters, although Forthnet said there has been “no significant development” regarding this.
Vodafone has a strategy of adding fixed services to its existing mobile footprint either through acquisition, or more recently, by building infrastructure from scratch.
The European Commission gave Vodafone’s €7.2 billion acquisition of Spanish cable operator Ono the green light at the beginning of July while it acquired Kabel Deutschland last year.
In addition, Vodafone was recently picked by energy supplier ESB as its partner in rolling out a €450 million fibre-to-the-building network across Ireland. Vodafone’s quad-play strategy is already in full swing in Ireland, where it has 200,000 fixed broadband customers.