Eircom announces reorganisation plans

Thursday 07 August 2014 11.58
Eircom continuing a review of its strategic options, including a possible listing on a stock exchange
Eircom continuing a review of its strategic options, including a possible listing on a stock exchange

Eircom has announced plans to transfer of the assets and liabilities of Eircom Limited - its main operating company - to a new operating company, which would be incorporated in Jersey. 

The transfer is being seen as a step for Eircom to make a return to the stock market for the third time.

The company said it will engage with its shareholders, bondholders and lenders regarding the potential reorganisation over the coming weeks. 

Eircom said the new company would be tax resident in Ireland and "would provide greater flexibility to pay dividends to shareholders in the future" .

The company also said it was continuing a review of its strategic options, including a possible listing. It also said that the reorganisation, if implemented, will not have any impact on its operations here.  

"Nor does Eircom expect that the reorganisation will have any impact on Eircom's customers or business partners as Eircom's operations will remain in Ireland," a statement from the company said.

Eircom has changed ownership six times since 1999. The company emerged from bankruptcy protection in 2012 after €1.8 billion, or 40%, of its debt was written off. 

A return to the stock market is seen as helping cut the company's €2.2 billion net debt, sources have said. 

Eircom has been cutting jobs and upgrading its broadband network under a plan to revive revenues and earnings.