The Australian Federal Courts have officially approved yesterday’s vote by the shareholders of Eircom Holdings to accept the proposal by STT Communications to buy the company.
STT Communications is a subsidiary of Singapore Telemedia Technologies (ST Telemedia). The company is bidding to acquire a 57pc stake in Eircom for an estimated €140 million.
“This week’s developments are important milestones towards the conclusion of the transaction in early January,” said Eircom CEO Paul Donovan.
Eircom has been bought and sold five times since it went public in 1999 and this has had an adverse impact on the incumbent’s ability to deploy the cutting-edge broadband infrastructure that the Irish economy will need for the challenges ahead.
Each of Eircom’s owners in recent years has been an investment vehicle of one sort or another and there is a feeling in the telecoms industry that the right owner for the largest telecoms operator in the State would be a telecoms company with the knowledge and foresight to help the company grow.
Could STT Communications, whose parent company is acclaimed telecoms player ST Telemedia, be that owner who will modernise Ireland’s largest telecoms carrier and prepare the economy for its digital future?
“It is vital that Eircom Group transforms itself into a modern telecommunications company and ensures the group not only competes successfully but also actively contributes to the re-establishment of Ireland’s international competitiveness,” said Paul Donovan.
“ST Telemedia brings a wealth of industry knowledge, both in Singapore and abroad, which will help us develop compelling customer offerings delivered at lower cost.
“Throughout this process, the company has remained focused on the operational challenges facing the business. The necessary cost agenda combined with the transformation programme already under way will make our products and services more attractive.
“Customers continue to demand more from us as a provider, and the group is determined to deliver more for them in the future,” Donovan said this morning.
By John Kennedy