Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL), controlled by chairman and CEO Joseph Maiman, today completed its acquisition of the international calls, Internet service provider (ISP), and inland telephony businesses of 012 Smile.Communications Ltd. (Nasdaq:SMLC; TASE: SMLC). Ampal set up an indirect wholly-owned subsidiary, 012 Smile Telecom Ltd. for this purpose, and has obtained all necessary licenses from the Ministry of Communications.
Ampal paid NIS 1.2 billion for the businesses, including customer and supplier agreements, management, employees, infrastructure, equipment and other assets. It financed the deal with equity, NIS 640 million in a long-term loan from Bank Leumi (TASE: LUMI) and Israel Discount Bank (TASE: DSCT), and a NIS 160 million loan from Ampal subsidiary Merhav-Ampal Energy Ltd. as part of a NIS 220 million loan from Menorah Mivtachim Holdings Ltd. (TASE: MORA) and Harel Insurance Investments and Financial Services Ltd. (TASE: HARL).
Shaul Elovitch will continue to control 012 Smile.Communications, which will acquire the 30% controlling interest in Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ). Eli Holtzman has been appointed as 012 Smile.Communications' new CEO, replacing Stella Hendler, and Doron Turgeman will be CFO, effective immediately. The two men hold the corresponding positions at Smile's direct parent company Internet Gold Golden Lines Ltd. (Nasdaq: IGLD; TASE:IGLD).
Ampal's share rose 1.1% at the opening on Nasdaq today to $2.66, giving a market cap of NIS 149 million. The share rose 1.8% on the TASE to NIS 10.06. Smile's share was unchanged at the opening on Nasdaq at $23.41, giving a market cap of $592 million, and the share rose 3.2% on the TASE to NIS 90.
Published by Globes [online], Israel business news - www.globes-online.com - on February 1, 2010
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