Israeli group is set to conclude the sale of PSINet Europe's British activity to a European investor for £40-50 million.
An Israeli investor group led by the Ofer family's Israel Corp. (TASE:ILCO) is set to sell PSINet Europe, an Internet service provider.
Sources inform ''Globes'' that the Israeli group is set to conclude the sale of PSINet Europe's British activity to a European investor for £40-50 million. If the deal goes through, Israel Corp.'s capital gains will be in the tens of millions of dollars.
The Israeli investor group gained control of PSINet Europe, which is active mainly in Great Britain, in July 2002, for a mere $10 million. The company was in receivership at that time. The parent company, backbone carrier PSINet Inc. of the US, which raised billions of dollars for investment in its infrastructure during the high-tech bubble years, filed for Chapter 11 bankruptcy protection in 2001, and was delisted from the Nasdaq.
Published by Globes [online] - www.globes.co.il - on Sunday, June 06, 2004