Eircom is likely to pursue an initial public offering as a buyer is yet to come forward in the dual-track process it launched in April, Irish national the Sunday Independent reported yesterday.
The Irish incumbent could list as soon as October and hopes…
Eircom is likely to pursue an initial public offering as a buyer is yet to come forward in the dual-track process it launched in April, Irish national the Sunday Independent reported yesterday.
The Irish incumbent could list as soon as October and hopes to be valued at €3bn (US$3.9bn). Its investors would be willing to raise €1bn (US$1.3bn) in the float, the report said.
Eircom mandated Goldman Sachs, Morgan Stanley and Rothschild to explore options for the business last spring and a number of buyers have looked at Eircom since.
According to the Independent citing sources at one of Eircom’s shareholders, AT&T made a preliminary approach earlier in the year. Vodafone and Deutsche Telekom also looked at the asset, but none of the telcos followed up their interest.
However, an Eircom spokesperson denied the company has been approached by AT&T and downplayed links to Vodafone and DT.
Private equity firms KKR, Apax Partners and CVC were also sounded out, the report said.
Eircom declined to comment on this particular point and said it continues to pursue a dual-track process, adding that no decision has been taken. But it expects to settle on its next move before the end of the year, the spokesperson said.
The operator recently received the consent of its shareholders, bondholders and lenders for a corporate reorganisation which would allow it to pursue an IPO. Eircom can now incorporate its business in Jersey and be a tax resident in Ireland, which it said would give it greater flexibility to pay dividends to shareholders in the future if it chose to list.
An IPO this year would come just two years after the group was taken over by its bondholders, which snapped it up from an administration process. The takeover saw US-based private equity firm Blackstone become Eircom’s largest shareholder.