Israel’s three cable companies - Matav Cable Systems Media Ltd. (TASE: MATV), Television Holdings (Tevel), and Golden Channels - signed the final merger agreement yesterday, after years of negotiations. The agreement was signed after the cable companies’ controlling shareholders and the banks reached a financing settlement. The cable companies will receive NIS 3.95 billion, which will be divided into several credit arrangements, and will replace the existing separate frameworks for each company. In addition, NIS 755 million of the credit is designated for financing the company’s investments.
HOT’s shareholders Yediot Ahronot Ltd., Delek Group Ltd. (TASE: DLEKG), and Fishman Holdings, as well as the banks, have first refusal rights for five years in event that any shareholder wants to sell its stake in HOT.
Under the merger agreement, the banks will separately own 29.5% of HOT, Fishman Holdings will own 14.6%, Delek Group will own 15.9%, Yediot Ahronot will own 16.7%, and Bank Leumi (TASE: LUMI) will 15.4%.
Eliezer Fishman is the controlling shareholder in “Globes”.
Published by Globes [online], Israel business news - www.globes.co.il - on January 1, 2007
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