Singapore Technologies Telemedia (STT), the investment fund controlled by Temasek Holdings, has submitted a revised offer for the 57.1% of Irish former monopoly Eircom held by Australian investment fund Eircom Holdings (ERC). In a statement published by the Australian Securities Exchange, ERC’s board confirmed it had studied and approved STT’s ‘definitive proposal’ to acquire all of ERC’s issued share capital. The Singapore-based group is offering ERC shareholders AUD0.40 (USD0.34) per share and has promised to distribute ERC’s available cash surplus in the form of a capital return; it assumes the capital return will be equivalent to AUD0.97/share. Under the revised proposal, shareholders can also opt to receive an alternative share in a company called BidCo, an unlisted enterprise that will be incorporated in the Cayman Islands, in lieu of exchanging their shares for money. If a deal is completed, it will be the fifth time Eircom has changed hands since it was privatised in July 1999. Shares in ERC, formerly known as Babcock Brown Capital (BCM), have been suspended on Sydney’s bourse while the fund’s board considers STT’s new proposal.
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