Digicel group chief executive Oliver Coughlan is to step down from the role in December, with chief operating officer Maarten Boute taking up the role on an interim basis.
Digicel founder Denis O’Brien has also stated he will announce his successor as chairman of the Caribbean-based telecoms company in the “coming weeks” at the end of a debt-restructuring process that will reduce his equity shareholding to about 10 per cent and see a group of bondholders take control of the group.
“However, I will remain as a director and shareholder of the company,” he added in a note circulated to announce the leadership changes.
Mr Coughlan had been due to retire at the end of 2022 but remained in position to help oversee the restructuring process. He has been with Digicel for more than nine years, running its Pacific business before taking the helm of its Caribbean and Central America markets.
Parties’ general election manifestos struggle to make the figures add up
On his return to Web Summit, the often outspoken chief executive Paddy Cosgrave is now an epitome of caution
Surviving a shake-up: is restructuring ever good for staff?
The Irish Times Business Person of the Month: Dalton Philips, Greencore
[ Digicel paid O’Brien and linked firms $90m in past three yearsOpens in new window ]
Mr O’Brien said Mr Coughlan had demonstrated a “calm, capable and friendly demeanour” that had allowed the business to “flourish and grow” despite the challenges it faced.
“There is no doubt that Oliver has done a terrific job,” Mr O’Brien said. “Under his leadership, we were able to launch our digital operator strategy, divest the Pacific arm… in a sale to Telstra, navigate the Covid-19 pandemic and return the business to growth.”
Could a Supreme Court decision have huge implications for workers in the gig economy?
Mr Boute has been with Digicel for the past 14 years, working as chief operating officer for the past eight months. “As Maarten steps into this interim role, I have every confidence in his ability to successfully lead the company during this time,” Mr O’Brien said.
The current restructuring, which will see $1.7 billion (€1.6 billion) of debt written off and a group of bondholders take control of the group, is Digicel’s third attempt to overhaul its borrowings in the past five years. It is on track to reduce company debt to $3.12 billion, compared to a peak of over $7 billion in early 2019.
[ Denis O’Brien faces stretching target to lift Digicel stake to 20%Opens in new window ]
Under the restructuring plan, Mr O’Brien’s equity stake will fall to 10 per cent although he will also receive warrants that will allow him to purchase within six years the equivalent of a further 10 per cent of the amount of shares outstanding when the restructuring is completed.
The price at which the warrants can be converted into shares will be based off an equity value target of $1.1 billion for Digicel. A valuation calculation used by debt ratings agency Fitch suggests that the company will have an initial equity value of about $375 million after the debt overhaul.
