Esat Telecom Group has raised more than $40 million (£29 million) through a new share issue. It also saw Esat chairman Mr Denis O'Brien net £4.4 million by selling 200,000 of his shares. He is retaining shares worth approximately £70 million.

The issue saw a number of the group's major institutional shareholders sell over a quarter of Esat's shares to other institutional investors. Existing shareholders including Mr O'Brien sold 4.7 million shares. In all $186 million was raised, of which $40.3 million was raised by the Group.

The monies will be used to develop Esat's local, national and international telecommunications infrastructure.