The Federal Court of Australia yesterday approved Singapore Technologies Telemedia (STT’s) proposed takeover of Eircom Holdings, the parent company of Irish former monopoly operator Eircom. The decision effectively clears the way for STT to acquire the telco as planned in early January 2010 in a deal valued at around EUR140 million (USD204 million). Earlier this week shareholders in Sydney-based Eircom Holdings Ltd approved the Singapore firm’s offer, while on 3 December CommsUpdate reported that Ireland’s Competition Authority (CA) had also approved the deal. STT is understood to be ‘delighted by the various approvals’.
According to TeleGeography’s GlobalComms Database, in September this year Eircom’s Holdings, formerly Babcock and Brown Capital, reached a deal with STT, recommending shareholders accept the offer which is worth USD1.15 per share (a 20.2% premium on the Irish telco’s closing price on 24 June 2009). The parent company will seek approval from the Federal Court of Australia for the scheme of arrangement to give effect to the change of ownership. If granted, Eircom Holdings is expected to delist from the stock market in Sydney today. Eircom is being acquired by Emerald Communications, a Cayman Islands-registered vehicle being used by STT and the company’s Employee Share Ownership Trust (ESOT to conduct the takeover of the Irish phone group. Once finalised, Emerald Communications will become Eircom’s fifth owner in little more than ten years.