Cyprus media sector set for shake-up as investment firm eyes TV stake

GlobalWealth Group PLC on Thursday announced to the Cyprus Stock Exchange that it has signed an agreement for the potential acquisition of a stake in Vergina Kypros TV Ltd as part of its strategy to expand its investment portfolio.

The company stated that the agreement was concluded with Vergina Kypros TV Ltd and its existing shareholders.

Under the terms of the agreement, GWG will immediately provide the target company with short term financing in the form of a convertible loan to cover its working capital needs.

The agreement also grants GWG an exclusive call option to acquire a stake in the issued share capital of Vergina Kypros TV Ltd.

The call option may be exercised within an agreed time period defined between the parties.

Should the option be exercised, the total acquisition price will be paid through a combination of cash and the issuance of new GWG shares.

In addition, GWG retains the right to convert the loan amount into shares of Vergina Kypros TV Ltd, potentially increasing its participation in the company’s share capital.

The completion of the proposed transaction remains subject to a number of conditions for completion, including the conduct of thorough legal and financial due diligence.

This due diligence process is intended to fully clarify the company’s current financial position and verify any existing debts or liabilities.

Another key requirement for the completion of the transaction is the obtainment of the necessary approvals from the Cyprus Radio and Television Authority.

The company said it will update the investing public on any material developments regarding the exercise of the call option.

The announcement signals a potential move by GlobalWealth Group PLC into the media sector, subject to regulatory clearance and the outcome of the due diligence process.