Argo Capital Management’s portfolio company, On Telecoms, has entered into a definitive agreement to acquire Vivodi Telecom, a Greek telecommunications provider.
On Telecoms is a triple play service provider in Greece offering fixed-line telephony, internet and television services.
Andreas Rialas, chairman of the board of directors at On Telecoms and chief investment officer of Argo Capital Management, says: “This acquisition marks the first and important step towards the consolidation of the Greek telecommunications market. On Telecoms intends to play a leading role in the integration of the telecom and new media sector with additional transactions and partnerships. At Argo we remain firmly committed to the future growth and development of our portfolio companies and look forward to working with the expanded company.”
Under the terms of the agreement, On Telecoms will acquire 100 per cent of Vivodi’s outstanding shares through an all-cash offer. To finance the purchase, On Telecoms is planning a capital increase of EUR 50m in cash, which will be fully subscribed by the Efraimoglou family, Vivodi’s sole shareholder. The new entity will be 80 per cent owned by On Telecoms shareholders with the remaining 20 per cent held by Vivodi’s controlling Efraimoglou family.
Operating as a subsidiary of On Telecoms, Vivodi will be responsible for driving the company’s growth beyond the Attica region by expanding the network into Northern Greece. Upon completion of the transaction, On Telecoms will inherit an additional 35,000 LLU and 65,000 Carrier Pre-selection customers. This will comprise long-standing residential and business customers and bolster On Telecoms’ efforts to diversify and retain its existing customer base.
Gregoris Anastasiadis, chief executive of On Telecoms, says: “Through this important acquisition, On Telecoms has significantly strengthened its position in the Greek market. In addition, Vivodi’s shareholders will be investing in a new and more robust business entity. The fact that we have managed to achieve such a significant market share within a short period of time is in line with our aim of providing innovative and reliable fixed telephony, internet and television services throughout Greece.”
Formed in 2000, Argo is an independent alternative investment management company offering a multi-strategy investment platform in global markets, with a particular focus on emerging markets. Argo manages five funds including the Argo Capital Partners Fund 1, a private equity fund currently closed to new investment. The Capital Partners Fund 1 and its associated entities are the majority shareholders of On Telecoms.
On Telecoms began operations in January 2007. On Telecoms was the first operator to offer triple play, including IPTV services, en masse in Greece, which contributed to an overall reduction of broadband prices.
Vivodi launched its operation in March 2001. It develops and provides fixed-line telephony and internet services to both residential and business customers. Its triple play package and cable TV provide a combination of telephony, high speed internet and digital television complete with a variety of news, sports and entertainment channels.
