Singapore Technologies Telemedia (STT) is set to buy Ireland based telecom operator Eircom for €130m by the end of next week, according to reports by confidential sources. The telecom giant had earlier offered €120m for Eircom in June which was supported by the Eircom Employee Share Ownership Trust (ESOT).

Currently, both companies are sorting out number of issues such as management fee that STT will pay to run Eircom, formerly known as Babcock & Brown Capital. Eircom is reportedly having debt of €3bn and the proposed deal is likely to address infrastructure deficit for the economic growth of Ireland.

Singapore Technologies Telemedia will hold about 51 per cent stakes in the company after the conclusion of deal managed by STT's head of international business development, Anupam Garg.

The Eircom Share Ownership Trust (ESOT), holding 35 per cent stakes in Eircom, will also transfer its stakes to the new entity and it has already apprised the Revenue Commissioners of its plans. It is being said that the deal will not alter the tax treatment.