Ireland’s largest telecoms operator Eir has confirmed that Singapore’s sovereign wealth fund GIC has agreed to acquire up to €230m of the telecom group’s shares from existing shareholders.
The news comes after Eir yesterday (9 June) said it had “no comment” to make on reports suggesting it was Qatar’s sovereign wealth fund that had acquired a stake in the company.
GIC, which is one of the world’s largest global investors with assets in more than 40 countries, intends to purchase up to €230m of Eir’s shares at a price of €232 per share.
Anchorage Capital Group will remain Eir’s largest shareholder with a 35pc stake in the company.
Eir said it will give smaller shareholders an opportunity to participate in the sale of shares.
“Eir understands that the proposed acquisition will be arranged such that shareholders with smaller percentage holdings will be given the opportunity to participate in the sale so as to facilitate a liquidity event for those holders,” the company said.
The completion of the acquisition by GIC will depend upon the approval of the transaction by shareholders at an Extraordinary General Meeting of Eir’s holding company at the end of June.
Earlier this week, Eir replaced a €350m bond facility it entered into in 2013 with a new bond of €500m with a lower interest rate and a €150m credit facility.
Eir has said it will reach 1.7m premises in Ireland with high-speed broadband by the end of this year.
Singapore image via Shutterstock