Singapore’s GIC to buy stake in Irish incumbent Eir - Mobile World Live

Singapore’s GIC to buy stake in Irish incumbent Eir

10 JUN 2016

The acquisition of a minority stake by Singapore’s sovereign wealth fund, GIC, is just the latest ownership change for Eir, the Irish fixed and mobile operator.

The Irish company said GIC intends to purchase up to €230 million of its shares, at a price of €232 per share from existing shareholders. The size of the stake was not disclosed.

Separately, GIC last year announced an intention with partners to buy a one third stake in the combined UK operations of CK Hutchison and Telefonica, but the deal was blocked by the European Commission.

“Eir understands that the proposed acquisition will be arranged such that shareholders with smaller percentage holdings will be given the opportunity to participate in the sale so as to facilitate a liquidity event for those holders,” it said.

In addition to being a mobile operator, the Irish company also provides fixed services including broadband.

Completion of the acquisition needs to be cleared by an Extraordinary General Meeting of shareholders, which is expected to be held by the end of June.

Following the transaction, Anchorage Capital Group, a US hedge fund, will remain as Eir’s largest shareholder, with a stake of more than 35 per cent.

The Irish company has undergone a series of ownership changes since it was privatised in 1999. It was known as Telecom Eireann back then, before changing its name to Eircom.

Author

Richard Handford

Richard is the editor of Mobile World Live’s money channel and a contributor to the daily news service. He is an experienced technology and business journalist who previously worked as a freelancer for many publications over the last decade including...

Read more

Related

Tags