At midnight on Friday, Scailex Corporation (TASE: SCIX; Pink Sheets:SCIXF) announced that final agreement had been reached for the transfer of control of Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) to Haim Saban, after the Scailex board approved the deal.
The deal was signed in Hong Kong, as it is a tripartite deal whereby Saban is taking over the debt owed by Scailex to Hutchison, which lent Scailex, controlled by Ilan Ben-Dov, $300 million when it bought control of Partner from Hutchison three years ago.
Scailex will receive $80 million for the sale of two-thirds of its stake in Partner to Saban, and will remain with a 15% stake. Scailex will also be entitled to receive its original share of a future dividend distribution on account of 2012 profits.
Apart from the holding it is buying from Scailex (about 30%), Saban is expected to buy more shares in Partner from the public and raise his holding in the company. Leumi Partners, which owns 5% of Partner, is not expected to sell its holding.
The deal will reduce Scailex's debt to some NIS 1.5 billion, and bring in cash that will help it to service its debt in the coming year, without the need for a debt arrangement or a haircut.
Published by Globes [online], Israel business news - www.globes-online.com - on December 1, 2012
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