A consortium combining French operator Iliad and NJJ, the private investment vehicle owned by Iliad's founder Xavier Niel, has agreed to acquire a 64.5 percent stake in Irish telecoms operator Eir. Under the proposed deal, NJJ and Iliad will own 32.9 percent and 31.6 percent respectively.
Eir's existing shareholders, Anchorage Capital Group and Davidson Kempner Capital Management, will hold the remaining 35.5 percent in the company (26.6% and 8.9% respectively).
Announcing the news, Iliad said that it will pay EUR 320 million for its 31.6 percent stake and that the transaction is expected to close in H1 2018, subject to approval by the relevant authorities. The price is based on an enterprise value of EUR 3.5 billion for Eir, including EUR 2.1 billion in debt.
The agreement includes a call option, exercisable in 2024, which would give Iliad control of the Irish company, by enabling the acquisition of 80 percent of NJJ's stake (representing 26.3% of Eir's capital) at a 12.5 percent discount to fair market value, as determined by an independent valuation.
Eir's CEO Richard Moat announced he would step down after completion of the sale. The takeover follows several rounds of debt restructuring for the Irish incumbent, which is active both on the fixed and mobile markets. The deal marks Iliad/NJJ's entry on a fourth European market, after France, Switzerland and Italy.
