Eircom weighs up sale or IPO

Eircom Group’s advisers have approached some of Europe’s largest private-equity firms as Ireland’s former phone monopoly weighs a sale or a return to the stock market, according to people with knowledge of the matter.

Apax Partners LLP, CVC Capital Partners Ltd and KKR & Co LP are among buyout firms that have been approached to form a consortium for the Dublin- based firm, which has changed ownership six times since 1999, said three people who asked not to be identified because the matter is private.

Officials at Eircom, Apax and CVC declined to comment. KKR representatives didn’t immediately respond to e-mails.

Eircom, which emerged from bankruptcy protection in 2012 after €1.8bn, or 40% of its debt, was written off, hasn’t made any decision on its options, said two others. A return to the stock market is seen as helping to cut the company’s €2.2bn net debt, they said.

Discussions with private-equity firms are at an early stage, said the people. An initial public offering would see Eircom target a main listing in Dublin, with a second quotation in London, the people said. The company is being advised by Rothschild, Goldman Sachs Group and Morgan Stanley.

Eircom has an estimated value of about €2.6bn, according to David Holohan, head of research at Merrion Capital in Dublin. Its shares last traded in 2006.

Blackstone Group LP, which owns a quarter of the firm through its debt arm GSO Capital Partners LP, was among the firms approached and chose not to pursue a bid, another person said. The New York-based firm led a group of senior lenders seizing control of the company two years ago under a debt restructuring.

Eircom has been cutting jobs and upgrading its broadband network under a plan to revive revenues and earnings. Earnings before interest, tax, depreciation and amortisation for the nine months through March fell 1% to €352m, according to latest available figures.

— Bloomberg