Merger to earn O’Brien €509m

TELECOM entrepreneur and tax exile Denis O’Brien could increase his personal wealth by as much as €509 million by merging two of his mobile phone companies.

Digicel Group, where O’Brien has close to 90% ownership, has told bondholders it plans to buy at least 51% of its sister company, Digicel Pacific Ltd, which is 84% owned by O’Brien.

A value of $1.1 billion (€808m) including €300m debt is put on Digicel Pacific. A full takeover by Digicel Group would release $825m (€606m) to shareholders – €509m to Mr O’Brien.