Bank Leumi (TASE: LUMI) has exercised an option to buy Scailex Corp. Ltd. (TASE: SCIX; Pink Sheets:SCIXF) Series 1 convertible bonds for NIS 103 million. The bank is carrying out the transaction through Leumi Partners Ltd.
Scailex, controlled by Ilan Ben-Dov, gave Bank Leumi the option as part of the deal, signed on August 21, for the sale of 4.99% of Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) to the bank when Scailex closes the deal to acquire control of the company. Bank Leumi paid NIS 515 million, at NIS 67 per share, reflecting a company value of NIS 10.3 billion for Partner. The price per share was the same as the price at which Scailex signed the deal to acquire 51.3% of Partner from Hutchison Telecommunications International Ltd. (NYSE: HTX; HKSE: 2332) for NIS 5.3 billion.
Leumi Partners VP Yaron Bloch said, "Leumi decided to exercise its option, given it as part of the agreement for the purchase of Partner shares from Scailex, in view of the rapid progress in sewing up the financing for Scailex's acquisition of Partner. We believe that the closing of the deal, which we expect soon, will make a significant contribution to the company. The fact that Scailex has been able to raise a record NIS 1.8 billion in a short time testifies to the capital market's great confidence in the company."
Scailex's share closed at $5.90 on Nasdaq yesterday. The share rose 0.3% in morning trading on the TASE today to NIS 68.20. Partner's share closed at $19.63 on Nasdaq yesterday, giving a market cap of $3.02 billion. Its share fell 0.5% in morning trading on the TASE today to NIS 73.25.
Published by Globes [online], Israel business news - www.globes-online.com - on October 19, 2009
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