The chairman of Ireland-based regional mobile operator Digicel has said he will not be proceeding with its approach for cash-strapped Irish incumbent Eircom.
A spokesperson for Irish billionaire Denis O’Brien said in an emailed statement that he had…
The chairman of Ireland-based regional mobile operator Digicel has said he will not be proceeding with its approach for cash-strapped Irish incumbent Eircom.
A spokesperson for Irish billionaire Denis O’Brien said in an emailed statement that he had “informed the first lien committee at Eircom that he will not be proceeding with a proposal for the company”, adding that there will be no further comment on this matter.
It is understood that Eircom, which is being advised by Gleacher Shacklock and JP Morgan, has set an 18 November deadline for bids to support the restructure of its €3.75bn (US$5.1bn) of debt. It is not though that a deadline has been set for the conclusion of any sale, but a waiver Eircom received earlier this year on the breach of it banking covenants is set to expire on 15 December.
On 28 October, Eircom announced that it had been approached by an undisclosed third party as part of the restructuring.
As well as Digicel, reports suggested Hong Kong conglomerate Hutchison Whampoa had approached the firm, but 3 Ireland, the Asian group’s Irish mobile operator subsidiary, later denied the claims.
Meanwhile, UK-based PE firm Communications Venture Partners (CVP) is reportedly talking to Eircom owners Singapore Technologies Telemedia (STT), which owns 65%, and employee share trust ESOT, which owns the rest, in an attempt ensure they retain control of the group.
Neither party was able to comment on the speculation.
Houlihan Lokey is advising Eircom’s first lien lenders, while Moelis is thought to be advising its second lien debtors.
