THE ESTIMATED value of Eircom has been revised downwards by approximately 3.8 per cent by advisers to owners Babcock and Brown Capital (BCM), an Australian listed fund.
The revision is not the product of a deterioration in Eircom’s business, BCM said yesterday.
KPMG have revised downwards the multiple they would apply to Eircom’s earnings before interest, tax, depreciation and amortisation, reflecting a revised view on the value of telecoms companies globally. The previous range for the multiple had been 6.25 to 6.75. Yesterday BCM said this has been revised downwards to 6 to 6.5, a downwards shift of 0.25 or approximately 3.8 per cent.
KPMG is valuing BCM as part of an off-market tendering process. It expects to be able to update the market early next week of the outcome of its review of its valuation, arising from the change of view on the part of its advisers.
BCM owns 57.1 per cent of Eircom and its associates hold 7.9 per cent. An employee controlled trust owns 35 per cent. The other asset owned by BCM is the Golden Pages business in Israel.
