Vol. 526 No. 3
177 Mr. Haughey asked the Minister for Public Enterprise if she will give details of the sale of a company (details supplied); the way in which the proceeds of this sale were used; and if she will make a statement on the matter. [26673/00]
On 7 April 1998 the Government approved a trade sale of 100% of Cablelink, which was 75% owned by Telecom Éireann and 25% by RTE.
An information memorandum, which outlines Cablelink's existing businesses, plans for its future development, the current regulatory environment and a financial overview, was sent to over 30 potential bidders who had previously expressed an interest in the company. These potential bidders had signed confidentiality agreements and were given a deadline of 10 March 1999 for submission of indicative offers.
Five indicative bids were received by the deadline from NTL Group Ltd., TCI Tele-Communications Ireland Ltd., ESAT Telecom Group plc, United Pan-Europe Communications N.V. and Cable Management Ireland Ltd.
Based on an evaluation of the proposals by the appointed advisers, Rothschilds, all five bidders proceeded to the next stage of the process which involved a detailed due diligence process and presentations from Cablelink management. Following consideration of further bids, received on 27 April 1999, it was decided that the NTL bid of £535,180,000 should be accepted.
The Ministers for Public Enterprise and Finance and Comsource conveyed their approval on 6 May, in accordance with section 3.1 of the Telecom Éireann shareholders' agreement and a sale and purchase agreement between the shareholders and NTL was signed that day. Telecom Éireann, RTE and NTL signed an agreement on 7 July 1999 formally handing over ownership of Cablelink to NTL.
The proceeds of the sale accrued to the shareholders, Telecom Éireann and RTE, in proportion to their shareholding.
