ECONOMY

Forthnet rise on Nova deal

Forthnet SA gained the most in a week after it agreed to buy Naspers’s Greek and Cypriot pay-TV unit NetMed NV, known for its subscriber satellite service Nova, for 490 million euros. Forthnet, Greece’s second-biggest provider of Web services, gained as much as 34 cents, or 6.1 percent, to 5.90 euros and traded at 5.60 euros at midday in Athens. The deal means Forthnet will be the first Greek company to offer high-speed Internet, television and phone services in one package, with nationwide coverage, Vangelis Karanikas, an analyst at HSBC-Pantelakis SA, said in a note. The acquisition »materially changes Forthnet’s size and business scope, as it will now turn into a media company,» he said. Forthnet, based in Iraklion, Crete, will raise 300 million euros by selling new shares and has agreed on long-term financing with Greek banks for acquisitions, according to a statement the company issued yesterday. The stock sale is backed by Cyprus-registered Forgendo Ltd, which holds 21 percent of Forthnet and is backed by Emirates International Telecommunications. Teletypos SA, Greece’s biggest free-to-air broadcaster and owner of a 12.5 percent stake in NetMed, may receive 56.3 million euros from the sale, according to estimates by Eurobank Securities SA.