Singapore’s sovereign wealth fund to take up to 16% stake in Eir

GIC, Singapore's sovereign wealth fund and one of the world's largest global investors, is to take up to a 16 per cent stake in Eir, purchasing up to € 230 million of the telecommunications company's shares at a price of € 232 per share. The deal is understood to value Eir, formerly known as Eircom, at between € 3.3-€ 3.5bn.

In a statement on Friday, Eir said it understands that the proposed acquisition will be arranged “such that shareholders with smaller percentage holdings will be given the opportunity to participate in the sale so as to facilitate a liquidity event for those holders”.

Following the transaction, Anchorage Capital Group will remain as Eir's largest shareholder, holding in excess of 35 per cent of the group's shares. The group's other main shareholders are understood to be York Capital ( 15 per cent), and Davidson Kempner (12 per cent).

Conditional

Completion of the acquisition is conditional upon approval by shareholders at an egm expected tobe held by the end of June.

Earlier this week sources had indicated that a sovereign wealth fund, likely to be the Qatari royal family’s $256 billion (€225 billion) investment fund, was looking at an investment in Eir, but it is the Singapore fund that has emerged as the investor.

A flotation of Eir is not expected for at least two years, following the cancellation in 2014 of a third initial public offering in a decade and a half. The entry of a sovereign wealth fund like GIC, which typically has a long-term investment horizon, will allow some lenders-turned-shareholders to cash in their investment.