skip to main content

Eircom will not pursue fresh flotation following review

Eircom said it would now focus on improving its business further
Eircom said it would now focus on improving its business further

Eircom has said it did not intend to proceed with a stock market listing "at this time" because key shareholders hoped to earn better returns on their investment in the future.

The telecoms group, which filed for protection from creditors just two years ago, said last month it was seeing early signs of commercial momentum amid stabilising earnings.

In April Eircom appointed Goldman Sachs and Morgan Stanley to advise on a possible initial public offering, which would have been the company's third in 15 years.

"As highlighted at our full year results, there are encouraging signs of positive momentum in the business. Our primary focus over the coming months will be to accelerate this momentum," the telecoms firm said in a statement.

"We have discussed this decision with our key shareholders. These shareholders expressed their clear preference to continue participating in the upside from the significant network investment made in recent years, which has only recently begun to manifest itself in the company's financial results."

Chief Financial Officer Richard Moat, part of a new management team appointed two years ago, said last month that while Eircom had yet to see the positive impact of encouraging economic data flowing through to its numbers, they soon would.

The company has had a chequered history with flotations.

The privatisation of Telecom Éireann in 1999 saw shares collapse after an initial public offering marketed as a one-way bet to customers. It was bought out two years later by a consortium led by Tony O'Reilly.

It built up its unsustainable debts during a series of changes of ownership and briefly refloated in 2004, again lasting two years before delisting as Ireland's credit-fuelled boom ran out of steam and a financial crisis enveloped it.

After filing for creditor protection to restructure €3.75bn of debt in 2012, Eircom was taken over by its senior lenders - including 24% shareholder, US buyout firm Blackstone.

The examinership was the largest in Irish corporate history and saw nearly all of the company's junior debt wiped out.