Telecoms operator Eircom says that it is no longer going to proceed with plans for an IPO because it sees encouraging signs of momentum in its business and may not need to raise capital on the markets.
Eircom, which filed for protection from its creditors two years ago, has restructured its debt levels from about €3.7bn down to €2.2bn.
If the company proceeded with the IPO it stood to raise a potential €1bn.
The company, which in recent weeks passed the 1 millionth premises with 100Mbps fibre broadband, also recently revealed plans to expand its broadband rollout plan from 1.4m homes and businesses to 1.6m by 2016.
Eircom began a strategic review of its business in April and appointed Goldman Sachs and Morgan Stanley to advise it on strategic financing options, including a potential IPO.
The latest decision does not mean the company may not pursue an IPO at a later stage or won’t become the acquisition target of other operators.
Momentum
“As highlighted at our full year results, there are encouraging signs of positive momentum in the business,” Eircom said in a statement.
“Our primary focus over the coming months will be to accelerate this momentum, to continue to improve our financial performance and to realise the benefits of our significant investment programme which will deliver value to all our stakeholders.
“Therefore, the company has concluded this strategic review and does not intend to proceed with an IPO at this time.
“We have discussed this decision with our key shareholders. These shareholders expressed their clear preference to continue participating in the upside from the significant network investment made in recent years, which has only recently begun to manifest itself in the company’s operating and financial results,” Eircom stated.
IPO image, via Shutterstock
