Eircom to raise €423m for Meteor purchase

Eircom intends to raise €423 million in new equity to pay for its acquisition of mobile phone company Meteor.

Under the terms of the rights issue, Eircom shareholders will be offered five new shares at a price of €1.35 for every 12 shares held at the close of business on September 13th.

The proposed issue of some 313 million new ordinary shares represents approximately 29 per cent of Eircom's enlarged issued ordinary share capital.

Eircom's employee share ownership trust, ESOT, intends to take up its rights in full under the rights issue.

Eircom will hold an egm on September 15th to approve acquisition of Meteor.