US businessman Leonard Blavatnik is believed to have the greatest chance of acquiring Shaul Elovitch's 32.6% stake in DBS Satellite Services (1998) Ltd. (YES), held through Eurocom Group. Blavatnik made progress in his talks with Elovitch last week, but no deal was struck, and Elovitch is also pursuing talks with other parties.
Sky Israel Private Equity Fund has quit talks for YES, but Elovitch is still in contact with Markstone Capital Partners Group LLC, Permira Advisors LLP, and a European telecommunications company.
As "Globes" was the first to report, Blavatnik approached Elovitch about YES a month ago. Elovitch asked for NIS 500 million for Eurocom's stake in YES.
However, if a buyer wants to acquire actual control of YES, it will also have to acquire the stakes of minority shareholders Lidan Ltd. (4.66%), Yoav Harlap (2.54%, which he acquired from Polar Communications Ltd. (TASE: PLRC), which still owns 5.4% of the company), and Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) (5.01%). Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) owns the other 49.8% of YES, but is not allowed to own more than 50% of the company.
Elovitch is selling Eurocom's YES stake after he acquired the 30% controlling interest in Bezeq from Ap-Sab-Ar Holdings Ltd. (the Apax Partners-Saban Capital Group Inc.-Arkin consortium) through Eurocom subsidiary 012 Smile.Communications Ltd. (Nasdaq:SMLC; TASE: SMLC).
Blavatnik resides in the US and London. "Forbes" ranks him 44th in its list "400 Richest Americans in 2009", with a fortune of $5 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on January 25, 2010
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