Ireland's Eircom Looking at Third Stock Market Listing
Published on: 14th Apr 2014
By: Ian Mansfield
Irish telecoms operator Eircom is reportedly considering its third stock market listing in 15 years as its debt holders look to sell their stakes.
The former state-owned company was privatised in 1999 in a stock market listing, but taken private again in 2001 by a private equity group. It listed again in 2004, and was again taken private in 2006.
In 2012, the company was largely taken over by debt holders in a debt for equity swap that saw 40% of the company's huge debt pile written off. The company is now owned by a consortium of around 200 debt holders.
It still owes about EUR2.2 billion, and a stock market listing would enable it to raise the funds for necessary network upgrades. The listing is not expected to be used to repay more of the outstanding debt.
The company said in a statement that it was "exploring a number of options with a view to further strengthening the financial position of the group. These options include a possible listing on a public market."
"Improving the group's debt maturity profile has been a key milestone in securing a more sustainable and flexible capital structure for Eircom," the company added.
The company also revealed that its senior managers could share a bonus pot worth up to EUR60 million if they maximise the return for the existing shareholders.