Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), controlled by Ilan Ben-Dov, is buying 012 Smile Telecom Ltd. at a value of NIS 1.4-1.5 billion. The final amount will derive from repayment of an owner's loan to Yosef Maiman, with the addition of a premium. Partner is buying the company at the end of an auction in competition with Patrick Drahi, who owns Hot Cable Systems Media Ltd. (TASE: HOT) and Mirs Communications Ltd..
Ben-Dov has not requested approval for the transaction, which is subject to approval by the Ministry of Communications and by the Antitrust Authority. The Ministry of Communications currently prefers to preserve the small players and to prevent mergers between Internet companies and wireless telephony companies. It seems this policy will now be put to the test.
The deal began to take shape under former Partner CEO David Avner, as part of his strategy to expand Partner into a communications group. Ben-Dov adopted this policy and pressed ahead with the transaction, as has incoming CEO Jacob Gelbard.
"Globes" was first to report earlier this week that Yosef Maiman was putting up 012 Smile for sale, barely a year after he bought the company from Shaul Elovitch.
Maiman bought the company about a year ago at a value of NIS 1.2 billion. He reached the conclusion that Smile was an excellent company, but that its ability to grow was limited as long as it was not part of a player with its own infrastructure.
Published by Globes [online], Israel business news - www.globes-online.com - on October 13, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010