Scailex Corporation (TASE: SCIX; Pink Sheets:SCIXF), controlled by Ilan Ben Dov, is in talks to sell its Samsung mobile phone import and market business to BGI Investments (1961) Ltd. (TASE: BGI), controlled by Zvika Barenboim. BGI has NIS 300 million in cash reserves.
The customers for the mobile phones are Israel's mobile carriers. Scailex is also the controlling shareholder in Orange franchisee Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR).
In December 2011, Ben Dov tried and failed to sell Scailex's Samsung phone business to Playtech Cyprus Ltd. (AIM:PTEC) controlling shareholder Teddy Sagi. The value of the deal was NIS 600 million.
In a confidence-building measure shortly afterwards, Ben Dov bought Scailex shares at NIS 17 per share, but was only able to acquire 0.023% of the company rather than the 2.6% of shares he wanted to buy, despite offering a 9.6% premium on the share price at the time.
Scailex's shaky financial condition is reflected in its financial report for 2011, which states that it made a NIS 493 million (attributable to shareholders) write down on its holding in Partner in the fourth quarter, resulting in a NIS 540 million loss for the year.
Ben Dov controls Scailex through Suny Electronics Ltd. (TASE: SUNY). Scailex's share price fell 2.4% by mid-afternoon on the TASE to NIS 16, giving a market cap of NIS 450 million. BGI's share price rose 2.3% to NIS 3.07, giving a market cap of NIS 120 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 18, 2012
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