Denis O'Brien's Digicel blames market volatility for halting market flotation plan

Denis O'Brien's Digicel blames market volatility for halting market flotation plan

Digicel last night cancelled what would have been the second biggest flotation on the New York Stock Exchange this year.

Senior management at Digicel are expected to calm investor concerns after the planned flotation was pulled just 72 hours before shares were due to begin trading.

Trading in shares was expected to begin on Friday, and it had been hoped that the telecoms group would be valued at up to US$10bn as a result.

The Denis O'Brien owned company last night put the change of heart down to "market volatility".

"Given our growth outlook, an IPO for Digicel was optional and predicated on achieving fair value for the company," he said.

"Recent volatility in equity markets has seen a number of IPOs listing at a discount to their signalled price range and this was a less attractive route for us".

"Digicel is now at a key juncture in our growth story following a $1.5bn investment programme over the past three years; we generate strong and growing free cash flow and we have no material debt maturities until 2021.

"Our growth plans remain unchanged and we remain in a strong position to exploit areas of interest in: Data, Business Solutions, Cable TV and Broadband".

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