Cablenet agrees €6.918 million sale of Arsinoe subsea cable capacity rights

Investi Newsdesk
cablenet logo

Class 1 transaction with BMIT Cyprus

Cablenet Communication Systems plc has agreed to sell certain rights over subsea cable capacity to BMIT Technologies (Cyprus) Limited in a transaction valued at €6.918 million.

The agreement, announced on 19 August 2026, covers indefeasible rights of use (IRU) representing 5% of the prevailing capacity of the Arsinoe Submarine Cable System, a high-capacity fibre-optic link connecting Egypt, Cyprus and France.

The transaction will see Cablenet transfer its rights and obligations relating to the capacity to BMIT Cyprus, while continuing to retain access to the capacity it needs for its own operations.

€6.918 million consideration

BMIT Cyprus will pay a total of €6.918 million for the rights. Of this amount, €2.6 million will be paid on completion, with the remaining €4.318 million due by 31 December 2026.

As at 30 June 2026, the asset had a net book value of €6,917,894, equivalent to around 5.4% of Cablenet’s total assets. The asset recorded a loss before tax of €465,314 in 2025.

Cablenet said the transaction will allow it to unlock value from its historical investment in the subsea cable rights and strengthen its liquidity position. The proceeds are expected to support further investment in the company’s growth, network infrastructure and operations.

Despite the sale, Cablenet will continue to use the capacity required for its telecommunications services under a separate pricing arrangement with BMIT Cyprus.

The transaction remains subject to a number of conditions before it can be completed. These include the execution of the necessary agreements, the release of a Bank of Cyprus floating charge over the asset, corporate approvals and clearance from the Cypriot Tax Department regarding the VAT treatment of the transfer.

The conditions must be satisfied or waived by 31 October 2026, unless Cablenet and BMIT Cyprus agree to extend the deadline.

The deal is also considered a material related-party transaction, as Cablenet and BMIT Technologies plc are both majority-owned subsidiaries of GO plc. Cablenet’s audit committee reviewed and approved the proposed transaction before it was subsequently approved by the board.