Sources inform ''Globes'' that Bezeq Ltd. (TASE: BEZQ) is considering selling its 44.98% stake in Internet portal Walla Communications Ltd. (TASE: WALA). Bezeq has approached a number of potential buyers, including IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Discount Investment Corporation (TASE: DISI).
Sources at Bezeq said a sale of Walla! was not a priority at this time, although it was still on the agenda. Bezeq’s shareholders want to make a capital gain on the sale, and are asking $80 million for its stake in Walla!
Discount Investment said the acquisition of Walla! was not on its agenda.
Bezeq’s shareholders are meanwhile pursuing the idea of issuing Walla! on London’s Alternative Investment Market (AIM), and have already met a number of underwriters in order to obtain a company value of $100 million. Walla! operates Israel’s most viewed portal. Most of its revenue is from advertising, with some coming from e-commerce.
Walla! posted NIS 75.6 million revenue in 2005, 61% more than its NIS 46.8 million revenue in 2004. The company posted a net profit of NIS 12.3 million in 2005, up 241% from 2004.
Founded in 1995, Walla! was controlled by Formula Systems Ltd. (Nasdaq: FORTY; TASE: FORT). Walla! raised NIS 20 million on the Tel Aviv Stock Exchange (TASE) in 1999, during the height of the Internet bubble, and control in the company transferred to Bezeq International Ltd. When the bubble burst, Walla! merged with Israel Online (IOL), the Internet portal of the Ha’aretz group.
Published by Globes [online], Israel business news - www.globes.co.il - on April 9, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006