Eircom’s lender-owners approve reorganisation to facilitate potential €3 billion IPO

Eircom has secured the approval of its shareholders and lenders to shift its holding company from Luxembourg to Jersey, a move designed to open the way for a potential €2.5 billion flotation later this year.

The company announced this afternoon that a consultation process it started two weeks ago with its lenders, who took ownership of the company following its 2012 examinership, has resulted in them giving formal consent for the “potential” move.

“The transfer of the assets and liabilities of Eircom Limited to a new operating company, which would be incorporated in Jersey and tax resident in Ireland, would provide eircom with greater flexibility to pay dividends to shareholders in the future,” it said.

Eircom, which will present its annual results next Friday, has hired Goldman Sachs, Rothschild and Morgan Stanley to advise it on its future "strategic options", which it said could include a flotation. "That review continues and no final decision has been made yet," it said today.

It had been widely rumoured that Eircom could seek to float in Dublin and London as early next month, but that is now thought unlikely as sources indicated Eircom will make no such announcement at its results briefing next week.