Eircom shareholders to vote on Meteor purchase

30 Aug 2005

Eircom is to hold an extraordinary general meeting on the 15 September at which shareholders will vote to approve the company’s proposed €423m acquisition of mobile firm Meteor.

Shareholders will also vote on whether or not to back a rights issue to raise the €423m to complete the purchase of Meteor.

According to documentation provided by Eircom, the company is proposing a five-for-12 rights issue at €1.35 per new ordinary share to raise the €423m. The rights issue price represents a 24pc discount to the middle market closing price of €1.78 on the Irish Stock Exchange as of 29 August, 2005.

Eircom proposes issuing approximately 313 million new ordinary shares representing around 29pc of shares in the company. The company said the rights issue is being fully underwritten by Morgan Stanley and Goodbody Stockbrokers.

According to Eircom, the Eircom Employee Share Ownership Trust, which holds 20.9pc of Eircom shares has said it intends to take up the rights issue in full.

The closing date for acceptance and payment for the rights issue is 11am on 7 October, with dealing in the new ordinary shares expected to commence on 10 October.

By John Kennedy