A consortium led by French billionaire Xavier Niel has agreed a deal to acquire a majority stake in telecommunications company Eir, whose pay-television broadcaster Eir Sport is a key player in the Irish sports rights market.
The consortium led by NJJ Telecom Europe, part of NJJ Group, the private investment firm of Niel, has agreed, alongside French telco Iliad to acquire a majority of Eir at an enterprise value of approximately €3.5bn ($4.1bn).
Eir is currently owned by an investor group including Anchorage Capital Group, LLC Davidson Kempner Capital Management, Singaporean sovereign wealth fund GIC and management.
The transaction, which is expected to complete in the first half of 2018, is set to see substantial investment to deliver better services for Eir’s customers. The acquiring consortium comprises NJJ, which will own 32.9 per cent and is the investment vehicle of Niel.
Iliad will own 31.6 per cent of Eir. Niel is the founder of and owns 52 per cent of Iliad where he serves as deputy chairman and chief strategy officer. Iliad has also been granted a call option by NJJ, exercisable in 2024, allowing it to acquire 80 per cent of NJJ’s stake in Eir. Current shareholders Anchorage Capital Group and Davidson Kempner will retain a combined 35.5 per cent share in the company, 26.6 per cent and 8.9 per cent, respectively.
Carl Leaver, chairman of Eircom Holdings (Ireland) Limited, said: “Today marks an important milestone for Eir, our customers and indeed for Ireland itself. Iliad and NJJ Telecom Europe bring a wealth of global telecommunications experience which will be of huge benefit to Eir and its customers.
“Coupled with the continued involvement of our existing shareholders, Anchorage Capital and Davidson Kempner, the company is well positioned to continue its operational transformation, underpinned by sustained investment, innovative products and services and improved financial performance.”
Eir Sport’s last major rights deal came in March as it acquired a new package of rights for the Gaelic Athletic Association’s Football and Hurling Club Championship under a five-year contract. The agreement, which commenced in May and will run through to 2021, marked the first time Eir Sport has broadcast Club Championship games on its channels. In August, Eir Sport acquired rights for this year’s US PGA Championship golf tournament.
The takeover is conditional upon the satisfaction of certain conditions, including obtaining EU Commission Competition clearance from the European Commission, media merger consent from the Minister for Communications, Climate Action and Environment in Ireland and Broadcasting Authority of Ireland consent.