Singapore Firm Closes on Buying Ireland's Eircom

Debt-laden Irish telco, Eircom is reported to be sold to Singapore Technologies Telemedia (STT) later this week for around EUR130 million (US$185 million), reports local news media. The former state-owned company has had a series of owners since privatisation and is currently owned by an Australian registered holding company, Eircom Holdings (ERC), formerly known as Babcock & Brown Capital.

Singapore Technologies Telemedia (STT) is itself owned by Singapore's Temasek Holdings, a sovereign wealth fund.

If the long planned deal is completed, then the Singapore company will have a controlling 51% stake in the Irish telecoms operator. 

The deal is close to being concluded with a number of issues yet to be ironed out, including an agreement on the management fee to be paid by STT to run Eircom, reported the Irish Independent, citing sources close to the negotiations.

Eircom currently has a debt mountain of over EUR3 billion following its acquisition by Babcock & Brown in 2006 for EUR2.4 billion. The dominant landline telco also operates the Meteor mobile phone network.

On the web: Irish Independent

Posted to the site on 16th August 2009