Denis O'Brien, Chairman, Digicel - file photo
Irish Billionaire Denis O'Brien is changing the focus of Digicel, as the company prepares to float its shares on the New York Stock Exchange, in what could be the most valuable initial public offer (IPO) of an Irish-linked company.
A report in Sunday's issue of the Irish Independent newspaper said Digicel is evolving from being a pure mobile telecoms firm. It is reportedly being transformed into a total communications and entertainment provider, as it moves into cable television, broadband and business services while continuing to grow its mobile offering.
The company plans to grow its revenues by generating more money from existing customers, though utilising its brand to sell more valued-added services.
Digicel has spent more than US$1.5 billion in the last three years building up its network, and aims to use some of the proceeds from the IPO to pay down its debt.
Some industry estimates have suggested that the company could have an enterprise value of around US$13 billion, including its $6.5 billion debt.
While Digicel has yet to finalise the amount it plans to raise on the markets, it is likely to become the most valuable Irish company ever floated. Eircom was previously the largest IPO when it was sold for over six billion euros in 1999.
Meanwhile, Digicel is reporting that its voluntary separation programme has cost it US$14.4 million. That figure is for the month of March.
During the month, Digicel announced that it wanted to reduce its staff complement.
It did not say how many employees accepted voluntary separation.
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