Suny Electronics Ltd. (TASE: SUNY), controlled by Ilan Ben-Dov and its subsidiary Scailex Corporation (TASE: SCIX; Pink Sheets:SCIXF) sent a letter yesterday to Hutchison and the Li Ka Shing Foundation responding to the cancellation of the deal to acquire Suny. Scailex owns 45% of mobile carrier and Orange franchisee Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR). In the letter, Suny and Scailex strenuously denied all the charges leveled against them, which were used as reasons for cancelling the deal. "Globes" reported last week that sources close to Ben-Dov were planning to send the letter.
In the letter, the companies said that the cancellation of the deal was a fundamental violation of the acquisition agreement by the purchasers and the acquisition agreement is still valid and the buyers are required to meet their commitments.
Suny and Scailex made it clear that until Hutchison retracts its cancellation of the deal, it will be responsible for the significant damage already caused by the announcement of the cancellation to the companies, the shareholders, and creditors including their bondholders and other interested parties, as well as the damage that will be caused until the cancellation announcement is retracted.
The letter also details that Suny intends taking all measures required to defend against the negative fallout and damage stemming from the cancellation announcement, and reserves the rights and remedies at its disposal against the buyers including enforcing the deal and financial compensation.
Hutchison cited three reasons for cancelling the deal: a fall in Partner's business results; a false presentation of Scailex's reports; and a reasonable concern that Suny and Scailex bondholders would not agree to the deal that was being offered. Sources close to Ben-Dov said that these reasons do not "hold water."
Published by Globes [online], Israel business news - www.globes-online.com - on September 5, 2012
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