The first stage of the financing package of Ilan Ben-Dov's acquisition of a controlling stake in Partner Communications Co. Ltd. (Nasdaq: PTNR; TASE:PTNR; LSE:PCCD) has begun. Sources inform "Globes" that as part of the financing deal Ben-Dov has sold 5% of Partner to Bank Leumi (TASE:LUMI) for NIS 515 million.
As expected Ben-Dov sold the shares to Leumi as part of the financing package, which the bank is giving him for the deal. Leumi is supposed to finance two-thirds of the bank loans that Ben-Dov is taking, while the remaining third will be financed by Mizrahi Tefahot Bank (TASE:MZTF).
Ben-Dov is expected to sell an additional 5% of Partner to an institutional body in the weeks left before the deal is closed, as well as completing all the other steps required to raise the necessary funds.
Sources close to the deal believe that financing will be arranged - in addition to selling shares to institutional bodies - by reducing the large capital generated by Partner of between NIS 1.3 - 1.5 billion, issuing bonds by Scailex Corp. Ltd. (TASE: SCIX; Pink Sheets:SCIXF) through which Ben-Dov is purchasing Partner, cash that Scailex has, increasing the dividend that Partner distributes from 80% of net profit to 100% and a $300 million from Hutchison Telecommunications International Ltd. (NYSE: HTX; HKSE: 2332) which is selling its controlling stake in Partner to Ben-Dov.
Ben-Dov acquired 51.3% of Partner from Hutchison for NIS 5.3 billion earlier this month.
Partner's share rose 1.1% on Nasdaq on Friday to $18.18, giving a market cap of $2.8 billion. The share was up 1.3% this morning on the TASE to NIS 70.
Published by Globes [online], Israel business news - www.globes-online.com - on August 23, 2009
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