HOT Telecommunication Systems Ltd. (TASE: HOT) controlling shareholder Patrick Drahi has opened talks with the banks to obtain the financing he needs to buy the stakes of Eliezer Fishman and Noni Mozes in the company.
Drahi must make an offer to purchase to increase his HOT holding to over 45%, and only afterwards will be able to acquire Fishman and Mozes' stakes. Drahi also has an option to buy Delek Group Ltd's (TASE: DLEKG) 4% holding in HOT, as well shares owned by the public, which would boost his stake to over 50%.
However, the issue is still under discussion between Drahi and the shareholders, who are concerned that their consent to an offer to purchase will result in Drahi achieving control of HOT even before he reaches a deal to buy their shares. It appears that this issue has been solved and that the parties have reached understandings, but it will be necessary to wait and see for the publication of the offer to purchase in order to know for sure.
"Globes" earlier reported that Drahi has been ready for months to publish the offer to purchase as part of his plan to control HOT. He is considering merging HOT with mobile carrier Mirs Communications Ltd., which he has already acquired, but this will not be possible until he fully controls HOT.
Drahi also wants to settle his problem with Fishman and Mozes, although they give him freedom of action at HOT, but nevertheless watch over him. Drahi wants to be the full owner to all intents and purposes.
Drahi owns 44.7% of HOT, Mozes owns 16.79% through Yediot Communications Ltd., and Fishman owns 12.61% through Fishman Holdings and Monitin Itonut Publishing(1985) Ltd.
HOT's share price rose 2.5% to NIS 37.27, after falling 1% at the opening following the publication of its financial report for the second quarter. Its market cap is NIS 2.77 billion. However, the price tag of a deal with Fishman and Mozes will likely be at a large control premium. Fishman would sell his shares first, followed by Mozes.
Eliezer Fishman is the controlling shareholder in “Globes”.
Published by Globes [online], Israel business news - www.globes-online.com - on August 31, 2010
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