The Australian owners of Eircom have reached a deal with Singapore Technologies Telemedia (STT) for the takeover of the company.
The board of Eircom Holdings, which was formerly known as Babcock & Brown Capital, is recommending to shareholders that they accept the offer.
It will be voted on at a meeting in Sydney in December.
The company's employee share ownership trust (ESOT), which owns 35% of the company, has agreed to co-operate with the deal.
Eircom Chief Executive Paul Donovan described the announcement as a positive development.
He said it brings important clarity to the ownership speculation that has been hanging over the group for much of this year.
If the deal goes through with Singapore Technologies Telemedia, it would be Eircom's fifth change of ownership since it was privatised in 1999.
Minister for Communications Eamon Ryan welcomed the announcement.
He said: 'I believe the announcement can give rise to many benefits for Eircom and for the Irish telecommunications sector.
'Eircom is a key player in the Irish Telecommunications industry and STT has an excellent reputation in the sector.'