Industry & Business

Digicel ready for $400m acquisition spree

 Breaking News
  • ASAI Issues New Guidelines For Advertising Mobile Phone and Broadband Services The Advertising Standards Authority for Ireland (ASAI), the independent self-regulatory body committed to promoting the highest standards of marketing communications in Ireland, has introduced new guidelines relating to the advertising of mobile phone and broadband services. The guidelines will complement the existing ASAI Code in ensuring that certain marketing terms used by telecommunications operators convey [...]...
  • Sustainable Apartment Living For Ireland A new report on sustainable apartment living in Ireland was launched by the Housing Agency and Clúid Housing. Amongst some of the reports findings and research were that apartment living has increased in the last few years and according to the report, the number of apartments in Ireland has increased by 85% between 2002 and [...]...
  • Brand New Campaign Showcasing Ireland’s Food and Drink Starts Fáilte Ireland’s Taste the Island campaign has gone live with a brand-new TV ad encouraging domestic holidaymakers to take a short break in Ireland to enjoy some of the 700+ food and drink related experiences on offer across this September, October and November. Taste the Island is a 12-week celebration of Ireland’s seasonal ingredients, adventurous tastes [...]...
  • Enet Expands its Data Centre Connectivity Portfolio Across Dublin Enet, Ireland’s largest wholesale, open-access network provider, has added six more data centres across Dublin to its national network. The additional data centres allow it to offer more options when it comes to dark fibre and managed bandwidth to its customers, and will result in increased connectivity for consumers. Enet is now connected to 25 data [...]...
  • ACCA and Bank of Ireland Issue Warning Amid Foreign Currency Fluctuations Many Irish companies that deal in foreign currency are exposing their businesses to significant and unnecessary profitability risks due to a lack of consideration of appropriate hedging within their organisations. That’s the message from the Association of Chartered Certified Accountants (ACCA) and Bank of Ireland who have launched a new programme to support businesses in [...]...

Digicel ready for $400m acquisition spree

Digicel ready for $400m acquisition spree
September 25
08:33 2015

Directors of Digicel have told investors it is prepared to spend $400 million on up to 15 acquisitions as the group pivots away from being a pure mobile operator and expands into cable television, high-speed fibre and corporate services.

Denis O’Brien, the company’s chairman, Colm Delves, its chief executive, and chief financial officer Laurence Hickey outlined the acquisition plan in recent days in a presentation recorded for potential investors.

The recording was made as part of a roadshow in the lead- up to Digicel’s flotation, which it hopes will raise in the region of $1.7 billion, valuing the Caribbean-based telco at about $10 billion, including debt. October 7th was suggested as a possible date for the flotation.

About $1.3 billion of the cash raised will be used to fund debt paydown, while the directors said the bulk of the rest would be used to fund buyouts.

Mr O’Brien, whose 60 per cent post-flotation stake will be worth close to $3 billion, will not take a dividend from the flotation, but his Island Capital corporate finance business could yield up to $20 million arising from the transaction.

The flotation documents reveal Island, an advisor to Digicel, is due a 0.5 per cent fee of the gross flotation proceeds, which would be $10 million if it hits the upper end of its price range and raises $2 billion.

Acquisitions fee

Digicel is also “obligated” to pay Island 0.5 per cent of the value of other deals such as acquisitions, tender offers and other capital transactions.

This suggests Island would be line for a fee as part of the debt paydown.

If Digicel also spends the remaining flotation proceeds on acquisitions, Island would pick up another payout similar in size to its fee on the flotation.

“We think this is an opportunity to delever the business and raise capital to take advantage of a number of deals where we are preferred bidder,” Mr O’Brien told investors.

Mr Delves said “there are 15 opportunities we are looking at closely, and we are confident we will buy them at the right price”.

Mr Hickey said the target of at least $400 million would be “largely used for mergers and acquisitions”.

Digicel also said it expects revenue from new data services to outstrip lost mobile revenue “sometime this quarter”.

About Author

admin

admin

Related Articles

New Subscriber

Subscribe Here



Advertisements





















National Manufacturing Conference & Exhibition 2018

NIBRT Springboard Success Stories



Upcoming Events

  • No upcoming events
AEC v1.0.4