The soon-to-be new owners of Eircom Singapore Technologies (ST) Telemedia believe that Eircom faces many challenges in the years ahead but has resolved to be a long-term investor in the company to steer it on the road ahead.
Yesterday, ST Telemedia, which a wholly-owned subsidiary of Temasek Holdings (Private) Limited, received ERC shareholder approval, court approval and regulatory approval for the €140-million acquisition of EircomHoldings Limited shares, which will give it a 56pc share of Eircom.
The company expects the transaction to close in early January 2010.
“ST Telemedia is a long-term investor and aims to build sustainable businesses,” said Lee Theng Kiat, president and CEO of ST Telemedia.
“In the new year, ST Telemedia will be working closely with the management and employees of Eircom Limited 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,” he said.
Theng Kiat said that Eircom faces numerous challenges ahead, including competition from well-capitalised multinationals, declining revenues, legacy infrastructure, high debt burden and a fast evolving regulatory environment.
“ST Telemedia will need the support of all stakeholders, including the Government, ComReg, ESOT and Eircom management and employees to transform the company into an efficient operator that can contribute to the further development of Ireland’s telecommunications industry,” he said.
By John Kennedy