Update: The price is $625 million. Discount parent company IDB Holding will gain control of Cellcom.
Discount Investment Corporation (TASE: DISI), has confirmed a "Globes" report that its negotiations for the purchase of BellSouth’s (NYSE: BLS) stake in leading Israeli wireless operator Cellcom have been completed. In a deal agreed last Thursday, Discount Investment acquired 34.75% of Cellcom for $625 million, reflecting a $1.8 billion value for the latter.
IDB Holding Corp. (TASE: IDBH), controlled by chairman Nochi Dankner, already owns 25% of Cellcom, while BellSouth and the Brazilian-Jewish Safra family each own about 35%.
The Safra family has first refusal rights to buy BellSouth’s stake, and also has the right to sell its shares to anyone else acquiring BellSouth’s stake.
Subject to regulatory approval, the deal will make IDB Holding the controlling shareholder in Cellcom. It also signals IDB Holding’s final and absolute abandonment of the acquisition of a controlling interest in Bezeq (TASE: BZEQ).
Published by Globes [online] - www.globes.co.il - on May 8, 2005