Irish fixed and mobile operator Eircom last Friday announced that its shareholders, bondholders and creditors have granted their formal consent for the firm’s potential corporate reorganisation, which could be the precursor to a market flotation. The carrier confirmed that the go ahead includes the setting up of a new operating and holding company based in the Channel Islands. In a statement, Eircom said: ‘As previously announced on 11 April 2014, Eircom has initiated a review to explore various strategic options for the Eircom Group, including a possible listing on a public market. That review continues and no final decision has been made yet. In this context and as envisaged by the proposed reorganisation, the transfer of the assets and liabilities of Eircom Limited (Eircom’s principal operating company) to a new operating company, which would be incorporated in Jersey and tax resident in Ireland having its branch in Ireland, would provide Eircom with greater flexibility to pay dividends to shareholders in the future.’ The statement goes on to note that the corporate reshuffle will have no impact on the telco’s operations or indeed its customers and business partners.
Despite the investor announcement, the Irish Examiner newspaper notes that Eircom is unlikely to formally update on progress being made on its future ownership review when it publishes its latest set of annual results on Friday. It cites a spokesperson as saying that ‘the review is not concluded and no option has been decided upon,’ and suggests that the outcome is not merely to do with timing.