Wednesday, 3 July 2019

Ceisteanna (286)

Thomas P. Broughan


286. Deputy Thomas P. Broughan asked the Minister for Communications, Climate Action and Environment the amount received from the privatisation of Telecom Éireann including all subsidiaries in 1999; the costs incurred in the privatisation; the net proceeds from same; and if he will make a statement on the matter. [28317/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Communications)

While files from the then Department of Public Enterprise for the period in question will have been archived, details regarding this matter were presented at a meeting of then Public Accounts Committee on 7 December 2000 in respect of the 1999 Annual Report of the Comptroller and Auditor General and Appropriation Accounts 1999 for Vote 32. These details include the following: in 1996 20% of Telecom Éireann’s shares were sold as part of a strategic alliance with Comsource an entity owned by KPN Telecom BV of the Netherlands (60%) and Telia AB of Sweden (40%). An additional 15% of shares were acquired by this entity along with the transfer of 14.9% of the shares to employees before the Initial Public Offering (IPO) of Telecom Éireann shares in 1999. These transactions yielded over IE£ 1.5 billion (€1.9 billion) to the State from the sale of shares to Comsource. The State received an additional IE£190 million (€241.25 million) from the share allocation to staff. In 1999 The State received IE £3.3 billion (€4.19 billion) in the Initial Public Offering (IPO) for Telecom Éireann.

In total, the Exchequer received IE£5 billion for the total sale of Telecom Éireann shares, and the costs of the flotation were IE£76.9 million (€97.64 million).