Sweden's ViaEuropa AB today bid in the tender for Israel Electric Corporation's (IEC) (TASE: ELEC.B22) fiber optic venture. Although the tender deadline is 2 pm, no more bids are expected, leaving ViaEuropa the sole participant.
ViaEuopa is heading a consortium with four Israeli parties: Tamares Telecom Ltd., owned by Poju Zabludowicz, BATM Advanced Communications Ltd. (LSE: BVC; TASE: BATM), Rapac Communication and Infrastructure Ltd. (TASE: RPAC), and Bynet Data Communications Ltd., owned by the Zisapel brothers. ViaEuropa owns half of the consortium, and each of the Israeli companies owns 12.5%. The consortium will own 60% of the fiber optic venture, and IEC will own 40%.
IEC's fiber optic venture will be the first company to lay an end-to-end fiber optic network in Israel. The multibillion shekel project will deploy a nationwide network over ten years. Cisco Systems Inc. (Nasdaq: CSCO) will be the main financier of the project's first stage.
Minister of Communications Moshe Kahlon told "Globes" that this was an important milestone in the development of Israel's telecommunications market. He said that Israelis still don’t grasp how much the venture will affect daily lives, and that it was impossible to imagine life without fiber optics. He wished the consortium success.
Published by Globes [online], Israel business news - www.globes-online.com - on December 26, 2012
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