Delek Group (TASE:DLEKG), controlled by Yitzhak Tshuva, today confirmed it was negotiating with Dankner Investments (TASE:DKNR) to buy some of Dankner’s shares in cable TV operator Matav-Cable Systems Media (Nasdaq: MATV; TASE:MATV).
“If and when the negotiations develop into a contract, another announcement will be issued,” Delek Group said in a statement to the Tel Aviv Stock Exchange.
At the end of August, “Globes” reported that Tshuva was in preliminary negotiations to buy Dankner’s shares in Matav.
Dankner Investments owns 47% of Matav. The negotiations with Tshuva were exploring a number of possibilities, including the sale of half or more of the shares, the report stated.
The negotiations with Tshuva follow Dankner Investments' negotiations in early 2003 to sell half of its Matav stake to Shamrok Holdings and Apax Partners at a company value of over $200 million. Matav's current market cap is $190 million.
Dankner Investments would earn a large capital gains from the sale and reduce its bank debt. Tshuva views the acquisition of Matav as an opportunity to enter the multi-channel television market and to participate in the planned cable companies' merger.
A deal with Delek Group will probably move the cable merger forward, since one of the key merger issues is the Bank of Israel's position on how its borrower group restrictions affect the merged cable company's debt to the banks. The restrictions stipulate that a bank may not loan more than 30% of its equity to companies or individuals with significant mutual ownership links.
Published by Globes [online] - www.globes.co.il - on 13 October, 2003