Telco Smart looks for buyer

CAVAN-BASED businessman Brendan Murtagh has engaged advisers to find a buyer or strategic partner for Smart Telecom, the Dublin-based telco that he controls.

Mr Murtagh has engaged British corporate financier Collins Stewart, which opened an office here last year, to assess its strategic options.

The businessman is prepared to sell all or part of the business and will also consider possible merger or joint venture opportunities for some or all of the business in an attempt to generate some value from the company.

A number of leading telecoms and media groups have been contacted in relation to the process, including Magnet Networks, Digiweb, UPC Ireland, Sky and some of the mobile phone operators here.

This is not the first time that Mr Murtagh has tried to offload the business. Last year, IBI Corporate Finance was engaged to look at various strategic options but the process came to nothing.

Sources said the company could have a value of €25 to €30 million as an infrastructure play but the credit crunch and recession will make it difficult to secure a deal.

Smart recently laid off 30 people from a full-time staff of 90.

The company sells voice, broadband and television services to the residential, corporate and government markets. It has 14,000 residential customers and 500-600 businesses taking its services.

It also operates a network of 2,500 payphones.

Smart was founded in 2000 by Oisín Fanning and was once listed on the stock market in London. It ran into financial difficulties in 2006, racking up losses of €55.6 million. That was a year when Smart’s landline services were disconnected by Eircom in a dispute over money owed, leaving thousands of customers without phone services.

It also lost its right to the final 3G mobile phone licence, which it had originally secured ahead of Eircom.

Smart was rescued by Mr Murtagh, who raised €39.5 million to repay creditors and other liabilities, and put veteran Irish cable TV executive John Riordan in charge of the business in February 2007.

Mr Riordan helped to restructure Smart but stepped down as chief executive in recent weeks. He owns 20 per cent of the company.

Sales and marketing director Liam Duggan succeeded Mr Riordan.