UK-based PE firm Communications Venture Partners (CVP) is reportedly talking to Irish incumbent Eircom’s owners as part of plans to inject around €300m (US$409m) in the cash-strapped firm.
Singapore Technologies Telemedia (STT), which owns 65% of…
UK-based PE firm Communications Venture Partners (CVP) is reportedly talking to Irish incumbent Eircom’s owners as part of plans to inject around €300m (US$409m) in the cash-strapped firm.
Singapore Technologies Telemedia (STT), which owns 65% of Eircom, and employee share trust ESOT, which owns the rest, are vying to retain control of the group as it places an 18 November deadline for bids, reported the Sunday Times yesterday citing sources.
Under the plan, ESOT would reportedly provide €45m-€50m (US$61m-US$68m) in equity but would see its stake cut to around 12%. Reports suggest CVP would provide around €50m, with STT providing the rest.
However, the Irish Times reported today that ESOT is looking for a holding closer to 18% and, in an apparent blow to STT, its chairman held a preliminary meeting with Ireland-based regional mobile operator Digicel on 10 November about a possible bid.
Neither party was able to comment on the speculation.
It is also unclear how a bid would be beneficial for Digicel, which although based in Ireland operates in the Caribbean and has a reported US$4.6bn in debts of its own.
Eircom, which is being advised by Gleacher Shacklock and JP Morgan, announced on 28 October that it had been approached by an undisclosed company to help restructure its €3.75bn (US$5.1bn) of debt.
The reports have not cited a deadline for the conclusion of a sale, but a waiver it received earlier this year on the breach of it banking covenants is set to expire in mid-December.
Houlihan Lokey is advising Eircom’s first lien lenders, while Moelis is thought to be advising its second lien debtors.
