BMIT Technologies plc has agreed to acquire long-term capacity rights on the
Arsinoe submarine cable system for €6.9 million, in its first strategic investment
outside Malta. The rights are being acquired from Cablenet Communication Systems
plc and cover capacity on a system linking Egypt, Cyprus and France. The
transaction will be completed through BMIT Technologies (Cyprus) Limited, a new
wholly owned subsidiary and remains subject to a number of conditions.

The acquisition adds a third asset category into BMIT’s digital infrastructure pillar,
alongside more than 300 passive mobile tower sites and a 49% stake in Malta
Properties Company plc and follows a direction the company has communicated to
shareholders over several years.

“We set out a plan to broaden what this company is built on. Owning infrastructure
alongside the IT services business, and growing beyond a market the size of Malta.
The first part is well established, with the digital infrastructure pillar now a material
part of what we are. This is the second part starting,” said Christian Sammut, Chief Executive Officer of BMIT Technologies .

The transaction also establishes BMIT in Cyprus, where the company will offer its
managed IT services. As a larger EU island economy, Cyprus presents a market of
meaningful scale in which businesses operate under the same regulatory requirements around resilience and security as BMIT’s customers in Malta.

“This investment is the foundation for what we want to build in Cyprus. Around it we
will grow our managed IT services business, the cloud, security and support work we
already do in Malta, through a team in Cyprus backed by the team here,” he added.

The investment also reflects growing demand across the region for trusted,
sovereign digital infrastructure, as businesses and governments place greater
emphasis on where their data is held and who manages the systems around it.

The company intends to grow from this position to extend its full portfolio of IT services to customers across Malta and Cyprus and the broader region who share the same requirements.

Almost half of the capacity is already contracted and generating revenue, with
Cablenet continuing to use it under a long-term agreement that pays BMIT an annual
service fee, adjusted for inflation and running to 2047. The remaining capacity is
available for BMIT to commercialise and sell to Cablenet and third parties. The
capacity is already operational and will continue generating revenue for a further 22
years. The company expects a meaningful contribution to profit from the first year of
operation.