Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) unit Walla Communications Ltd. has sold its 100% stake in Coral Tell Internet Services Ltd., the parent company of classified ads website Yad2, to Axel Springer Digital Classified Ltd., which is jointly owned by German media magnate Axel Springer and General Atlantic Fund. The deal is worth NIS 787.5 million, and will rise to NIS 806.3 million, after adjustments.
There were several other offers on the table for Yad2 but Walla decided to close the deal with Axel Springer which was the first company "to put the check on the table."
The biggest winner from the deal is Bezeq, which will report a profit of NIS 560 million before tax from the deal, while the government can expect a tax windfall.
A senior Bezeq source told "Globes" that there was no synergy between Bezeq, which wants to focus on producing content, and Yad2, and the telecom company therefore decided to sell.
Walla completed the full acquisition of Yad2 only four months ago. It reportedly paid NIS 75 million to exercise its contractual right to acquire 25% of Coral-Tell, giving Yad2 a value of NIS 300 million. Walla originally acquired control of Yad2 for NIS 117 million, giving it a value of NIS 156 million, in July 2010.
Published by Globes [online], Israel business news - www.globes-online.com - on May 7, 2014
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