Eircom has welcomed an Australian court's approval of yesterday's vote by the shareholders of its parent company Eircom Holdings to accept a takeover by STT Communications (STTC). STTC is part of Singapore Telemedia Technologies (ST Telemedia).
Eircom CEO Paul Donovan said this week's developments were important milestones on the way to the conclusion of the deal in early January.
Mr Donovan said it was vital for Eircom to transform itself into a modern telecommunications company and contribute to the re-establishment of Ireland's international competitiveness. He said ST Telemedia would brings 'a wealth of industry knowledge, both in Singapore and abroad' to help the company to do this.
ST Telemedia also welcomed the approval, adding that it was a long-term investor and would aim to build a sustainable business. 'ST Telemedia will be working closely with the management and employees of Eircom to determine a sound vision and strategy for the future, with a strong focus on meeting customer requirements, upgrading legacy infrastructure and generating shareholder returns over the long run,' said Lee Theng Kiat, the company's president and CEO.
The takeover deal valued Eircom at €3.94 billion, but STT will also be taking on its €3.87 billion in debt. The company's ESOT - the employee share ownership trust - which owns 35% of the company has agreed to co-operate with the deal.
