Sources inform ''Globes'' that Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) has reached an understanding with Polar Communications Ltd. (TASE: PLRC) to acquire its 7.9% stake in satellite broadcaster YES, formally known as DBS Satellite Services (1998) Ltd. Polar Communications, a subsidiary of Shrem Fudim Group Ltd. (TASE: SFG), has long wanted to sell the holding, and Bezeq has wanted to acquire full control of the company.
Polar Communications reportedly made a fair valuation for YES for the purpose of the deal NIS 1.75 billion, which means that it will receive NIS 114 million for its shares. The valuation, made by Fair Value Ltd., means that the company will not have to make a write-down on the holding compared with the value listed in the financial report for 2008.
The deal between Bezeq and Polar Communications has been delayed because of the Supreme Court hearing on Bezeq's petition to increase its stake in YES. Sources familiar with the negotiations say that the sale is a done deal, and that the parties have agreed on the price. If Bezeq wins the court hearing and is allowed to merge with YES, it will be able to open talks with YES's other shareholders.
Bezeq currently owns 49.8% of YES, Eurocom Group owns 32,6%, Polar Communications owns 7.9%, Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) owns 5.01%, and Lidan Ltd. owns 4.66%.
In February, the Restrictive Trade Practices Tribunal approved Bezeq's takeover of YES with restrictions within three months.
Bezeq and Polar Communications declined to comment on the report.
Published by Globes [online], Israel business news - www.globes-online.com - on April 21, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009