Eircom shareholders rubberstamp Meteor buy

15 Sep 2005

Eircom investors have given the company the final go-ahead to acquire Meteor, the mobile network operator, and initiate a €423m rights issue to finance its purchase.

At an EGM held by the company today, shareholders approved both resolutions with more than 99pc of votes in favour of each. The first resolution related to the approval of the acquisition of Western Wireless International Ireland LLC, the holding company for Meteor Mobile Communications. The second aimed to give Eircom directors the authority to allot ordinary shares to finance the acquisition, by way of the rights issue.

Dr Philip Nolan, Eircom CEO, said: “We’re delighted shareholders have given approval to the proposed acquisition and we look forward to completing the transaction as soon as possible.”

Under the terms of the rights issue, approximately 313 million new Eircom ordinary shares will be offered to all eligible shareholders listed on the Eircom register of members at the close of business on 13 September 2005. Each of those shareholders will be offered an additional five new shares for every 12 existing ordinary shares at the price of €1.35 per new share.

It is expected that dealing in new shares will begin at 8am tomorrow with the trading to conclude at 11am on 7 October 2005.

The rights issue is expected to raise approximately €423m before the deduction of commissions and expenses. It is being underwritten by Morgan Stanley and Goodbody Stockbrokers.

By Brian Skelly