ViaEuropa wins fiber optic venture tender

The ViaEuropa consortium will own 60% of the venture and Israel Electric Corp. 40%. Cisco will finance the first stage.

The Tenders Committee today announced that the ViaEuropa consortium has won the tender for the Israel Electric Corporation (IEC) (TASE: ELEC.B22) fiber optic communications infrastructure joint venture.

At the start of July, ViaEuropa and its partners will put the required money into the company and deposit the necessary guarantees.

The Israel Electric Corp. will officially notify the TASE on the matter tomorrow as will the other partners in the venture.

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.

Sweden's ViaEuropa AB 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.

Published by Globes [online], Israel business news - www.globes-online.com - on June 16, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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