Eircom’s main shareholder has today confirmed that it has received a revised bid from Singapore Technologies Telemedia (STT).
As exclusively revealed in today's
Irish Times, STT has increased its bid for Eircom Holdings (ERC), the Australian investment fund, formerly known as Babcock & Brown Capital (BCM).
ERC said that it has received a revised proposal to acquire the entire share capital of Eircom.
ERC shares have been suspended in Sydney while the fund's board considers the new proposal. Shares rose as much as 11 per cent in trading prior to its request for a two-day suspension.
The funds share price at the time of suspension, down 46.2 per cent in 12 months, implied market capitalisation of 183.02 million Australian dollars (€106.78 million).
STT's original approach anticipated the purchase of ERC for a price per share valuing it just below €30 million after an expected return of capital to shareholders. ERC proposed returning €78.15 million to its investors last Friday, implying that the first STT approach valued the fund at a little less than €108.15 million.
Any deal with STT, which is controlled by Singapore's sovereign wealth fund Temasek Holdings, would represent a fifth change of ownership for the business since Eircom, then Telecom Éireann, was privatised in July 1999. The company was taken off the stock market by a consortium led by Sir Anthony O'Reilly, refloated and was acquired in 2006 by BCM.