Magnet Networks and Digiweb have emerged as the two likeliest candidates to acquire the assets and customer base of Smart Telecom after the company went into examinership this week.
When contacted by Irish Computer for comment, both companies appeared to leave the door ajar for future announcements about their interest in the beleaguered telco.
Magnet responded with a “no comment for the moment” to suggestions it was interested in acquiring the Smart Telecom business, while Digiweb said it was “unable to comment at this stage” on the rumours.
In a statement explaining the decision to put the company into examinership, Smart Telecom confirmed it was “in advanced discussions” with a small number of interested third parties and that it planned to use the examinership process “to finalise the terms of an investment or merger with one of the interested parties”.
According to the Irish Times, senior counsel for the directors of Smart Telecom, Lyndon MacCann, told the High Court hearing, held to decide on the examinership, that there were two potential investors interested in using the capacity of Smart companies within their businesses.
While MacCann did not name them, Magnet and Digiweb are the likeliest companies to be interested in a business which operates across the country and claims to have the only next generation network (NGN) in Ireland.
Like Smart Telecom, which has unbundled 40 local Eircom exchanges, Magnet too has invested significantly in local loop unbundling (LLU) with a similar number of exchanges.
Another company which has been linked with Smart Telecom is Complete Telecom. A spokesperson for Complete Telecom told Irish Computer: “We can confirm that Complete Telecom has been in commercial discussions with Smart Telecom about the possible acquisition of all or parts of its business in Ireland. We believe it has a strong telecoms network capability and capacity which would complement our own national fibre network. We hope it progresses quickly with a new commercial and company structural arrangement that will ensure the delivery of an uninterrupted service to its existing corporate and government customer base.”
Magnet CEO Mark Kellett issued a statement reacting to Smart Telecom’s decision to file for examinership in which he complained that the Government and ComReg had failed to construct a fair and competitive telecoms market that would provide a platform for businesses to invest in NGNs.
Digiweb, which uses a range of technologies ranging from fibre to microwave to satellite to provide internet access to business and home customers, is also likely to be attracted by the Smart Telecom assets and customer base of 12,000 residential and 500 corporate customers.
The petition for the examinership, supported by Smart Telecom’s largest creditors, came after CityWest Ltd began proceedings for a winding up order against the company over debts of just over €80,000.
The examinership process gives Smart Telecom up to 100 days to produce an arrangement that would be accepted by its creditors and the Court. The company claims that, given the advanced state of negotiations with interested parties, it should be ready ahead of that deadline.
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