EIRCOM HAS ANNOUNCED plans to move its assets and liabilities to a Jersey-based entity.
In a statement issued this morning, the telecoms player said that it has “commenced a consent process related to a potential corporate reorganisation that would include the formation of new operating and holding companies in the eircom Group”.
The new companies will be incorporated in Jersey and tax resident in Ireland, with all management and operations of the companies remaining in Ireland.
Eircom’s assets and liabilities would be transferred to the new company under the plan, which the company said will provide it with “greater flexibility to pay dividends to shareholders in the future”.
Floatation
The former State-owned company announced in April that is considering another listing on the stock market, which would be its third in the space of just 15 years.
The company initially floated on the Dublin, London and New York stock exchanges in 1999, before being de-listed two years later after being bought by the Tony O’Reilly-led Valentia consortium.
Since then it has gone bankrupt, coming out of the process in 2012 after receiving a whopping €1.8 billion write-off in its debt.
The company has reportedly attracted interest from US telco giant AT&T, which could benefit from a tax inversion arrangement if it buys into eircom.
Regarding re-organisation options, including a stock market floatation, the company said that it will “engage with its shareholders, bondholders and lenders regarding the potential reorganisation through formal consent solicitation process over the coming weeks”.
To embed this post, copy the code below on your site
have your say