Hong Kong-based conglomerate Hutchison Whampoa is thought to have resubmitted a €2bn (US$2.6bn) cash offer for Irish incumbent Eircom, after its previous bid was rejected by the firm overseeing its restructuring.
Unlike a previous €2bn bid submitted…
Hong Kong-based conglomerate Hutchison Whampoa is thought to have resubmitted a €2bn (US$2.6bn) cash offer for Irish incumbent Eircom, after its previous bid was rejected by the firm overseeing its restructuring.
Unlike a previous €2bn bid submitted by Hutchison, however, the new offer has no conditions attached, except for a request for due diligence on the operator’s €3.75bn (US$5bn) debt.
Hutchison and Eircom declined to comment on the speculation, which was first reported in local press.
The offer comes after the expiration of a 23 April sale deadline set by Grant Thornton, which is overseeing Eircom’s restructuring in a process similar to Chapter 11 bankruptcy in the US. This short sales process, which was launched on 18 April, was managed by Morgan Stanley.
On 30 April, Grant Thornton’s Michael McAteer revealed it had rejected a last minute bid for the operator because of “the level of the offer and its conditionality”. The firm declined to disclose the identity of the bidder.
Reports explain that Hutchison, which is already in the Irish market through its mobile operator 3 Ireland, is on the lookout for ways to bolster its European presence.
Eircom is currently 65% owned by investor group Singapore Technologies Telemedia (STT), and 35% owned by employee share trust ESOT.
Under its latest restructuring proposal, the company’s first lien lenders will take control of the company in return for scrapping some of the €2.4bn (US$3.1bn) of debt that they are owed.
