Eircom set for sale to telco STT

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Irish telco Eircom, parent of mobile network Meteor, was provisionally sold off to Singapore Technologies Telemedia (STT) at the end of last week.

STT recently offered a revised bid worth a total of about €130 million (£112.22 million) for Eircom’s Australian parent Eircom Holdings (ERC), formerly known as Babcock & Brown Capital. In June, STT originally offered €120 million for Eircom.

The deal was expected to be concluded by the end of last week subject to the resolution of issues such as the management fee that STT will pay to run Eircom.

When a deal is concluded, STT will hold about 51 per cent of the new vehicle bidding for the parent, known as BidCo, while the Eircom Share Ownership Trust, which already owns 35 per cent of Eircom, will transfer its stake to the new firm. BidCo will be registered in the Cayman Islands.

It has been suggested that Eircom, which has debts of €3 billion, may return to the stock market by 2011 to enable STT to get a return on its investment.

STT representatives have also met with the Irish Government to discuss its plans to develop Ireland’s telecommunications infrastructure, including the establishment of a next generation broadband network.

 

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