Vol. 478 No. 3
148 Mr. Callely asked the Minister for Transport, Energy and Communications if he will give details of the recent sale of part of Telecom Éireann; the number of tenders and all other considerations in the sale; whether all actions and agreements of the sale were in line with public sector guidelines; and if he will make a statement on the matter. [10983/97]
The strategic alliance shareholder's and Share Purchase Agreements were signed on 20 December 1996 between the Irish Government, PTT of the Netherlands and Telia of Sweden. The transaction provides for PTT and Telia to acquire 20 per cent of the share capital of Telecom Éireann for an initial payment of £182.9 million. The agreement also provide PTT and Telia with an option to acquire a further 15 per cent of Telecom Éireann for £200 million in three years' time. In addition the State will receive 60 per cent of the increase in value of the strategic partners investment above a certain threshold in three years' time. The total proceeds for the 35 per cent stake are expected to exceed £500 million.
The agreement also provides for the transfer of significant strategic benefits to Telecom Éireann. While the details of specific strategic initiatives are commercially sensitive, in general they cover the full range of businesses segments.
This transaction was completed following a thorough selection process which was designed and managed by Morgan Stanley, investment bankers. Nine companies which had expressed an interest in the alliance received an information memorandum in the first phase of the process. Three of these potential partners participated in the final phase as two competing entities. The final selection was made on the basis of predetermined evaluation criteria covering financial, strategic and legal requirements.
The detail of this transaction was notified to the European Commission Competition Directorate and formal clearance was received from them before signing.
