STT takes helm of Eircom
Ireland’s largest carrier Eircom has begun operating under the new ownership of Singapore Technologies Telemedia.
STT finalized its €140 million acquisition of the carrier from its former Australian majority owner, Eircom Holdingsv(formerly Babcock & Brown), following shareholder approval in December 2009. The transaction marks the fifth change of ownership for the company within a decade.
“This heralds a new era. We will be working closely with the new shareholders to develop a business model for the long-term future of Eircom that delivers an unbeatable customer offer, transforms our operations, and drives a return for the shareholders who have invested in our business,” said Eircom CEO Paul Donovan.
STT faces some steep challenges with over €1.2 billion of Eircom's €4 billion net debt repayable in 2014, and another €1.2 billon in 2015.
In order to revitalize the carrier’s performance, management has already flagged a rationalization program, which includes reducing the 7,000 strong workforce by 1,200. About 700 employees have already been cut under the plans.
An STT spokesperson said that the firm would be working closely with management and employees to determine a "sound vision and strategy" in coming weeks.