Eircom sells off radio masts division for €155m

19 Sep 2007

Incumbent operator Eircom has sold off its countrywide network of 340 radio masts around Ireland and will reinvest the money in future networks such as its impending 3G mobile network.

Eircom said it sold its wholly-owned subsidiary Mastco to TowerCom Holdings for €155m in cash.

TowerCom is a consortium comprising Threefold Project Management, Goodbody Stockbrokers and Plainfield Asset Management LLC.

As part of the deal Eircom will retain operational access to the masts.

Speaking of the deal, Eircom chief executive Rex Comb said: “It frees capital that will be used to fund our investment commitments to deliver a technologically advanced network, capable of serving the growing broadband and data demands of our customers.

“At the same time, the company has secured long-term access to the masts to serve our current and future requirements,” Comb added.

He said the company will reinvest the money in its core business activities, in particular its ongoing broadband rollout, its next-generation core network and its forthcoming 3G network.

The money will also be used to improve the efficiency of the company’s local access network.

By John Kennedy