GILBERT + Tobin has advised eircom Holdings Limited (ERC) on the recently announced proposal for Emerald Communications (Cayman) SPC (ECC) to acquire 100 per cent of the issued capital of ERC pursuant to a court approved scheme of arrangement.
ERC’s principal investment is its 57.1 per cent interest in Ireland’s incumbent telecommunications provider, eircom. Until recently, ERC was managed by Babcock & Brown.
The proposal is a result of a comprehensive strategic review process undertaken by ERC with the objective of maximising value for ERC shareholders. This review process also recently resulted in the termination of ERC’s management arrangements with Babcock & Brown and the return of surplus capital to ERC shareholders.
Corporate Transactions Partner Garry Besson led the process and has been assisted by senior lawyer Melinda Sanders.
Under the proposal from ECC, ERC shareholders will be offered three alternative forms of consideration, including a cash alternative, a scrip alternative and an alternative involving a mixture of cash and scrip. The proposal is subject to a number of conditions and a meeting of ERC shareholders is expected to be held in late November to vote on the proposal.
“We are pleased to have advised ERC throughout its strategic review process, which has involved a number of steps undertaken by ERC aimed at maximising value for ERC shareholders. We are particularly pleased to have assisted ERC in relation to the recently announced proposal”, Ms Sanders said.
Gilbert + Tobin's Corporate Advisory team continue to deliver sound solutions for its clients. Other recent work the team has advised on includes the acquisition of Bay Audiology by private equity fund manager Crescent Capital Partners, the A$2.02 billion acquisition of Cemex’s Australian assets by Holcim Limited and the $440 million sale of shares in SEEK Limited by Consolidated Media Holdings Limited.
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