Eircom decision on IPO ‘not yet finalised’
Despite the smart money being on an IPO later this year, the company has consistently said its strategic options review remains ongoing and no decision has been made as to its long-term ownership structure.
A spokesperson for the group said yesterday that “the review is not concluded and no option has been decided upon”.
They suggested that an outcome is not solely a question of timing.
Earlier this year, the former state-controlled telecommunications group hired Goldman Sachs and Morgan Stanley to explore options for the company. While a trade sale hasn’t been ruled out, an IPO — which would be its third float in 15 years and its eighth ownership change — is the most likely result; something given greater credibility by the recent decision to transfer the assets of Eircom’s principal operating company to Jersey, while still being tax resident here.
Late last week, Eircom added that it had received the required consent — from its various shareholders, bondholders and lenders — for its “potential corporate reorganisation”; marking the removal of another hurdle to a return to public ownership.
While no fixed timeline has been given, it is widely anticipated that Eircom will seek a €3bn flotation before the end of 2014. Its senior management has consistently said that it hopes to have clarity on the future structure of the business by the end of 2014.
Eircom reports full-year figures on Friday — covering the 12 months to the end of June. At the end of May, it said that for the first nine months of the year, group earnings were down by 6% on a year-on-year basis, with underlying earnings down by 1%.
At that stage, chief financial officer Richard Moat — who said that third-quarter performance was in line with expectations and showed a continued stabilisation of performance — noted the strategic review was only in its early stages.
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