Bezeq to write down Pelephone value by up to NIS 1.1b

pelephone

Bezeq has issued a profit warning ahead of publishing its second quarter financial results.

Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) today announced after the close of trading on the Tel Aviv Stock Exchange, ahead of the publication of the company's financial statements, that the board of directors of Pelephone Communications Ltd., Bezeq's mobile phone unit, was holding  discussions today about the decline in Pelephone's value and its multi-year forecasts.

According to the discussions, and taking the projected cash flow into account, Pelephone is likely to record a decline in its value, which is liable to lead to a write down of NIS 800 million-NIS 1.1 billion.

"This is an initial internal assessment; a valuation will be conducted later by an external evaluator, which, taken together with the financial results, could result in the decline in value in the company books being different, perhaps even substantially so, from the internal assessment," Bezeq stated.

In its last valuation, Pelephone was estimated to be worth NIS 2.914 billion. The mobile operator is set to start implementing a vital project for its future - the introduction of a 5G infrastructure and network.

Published by Globes, Israel business news - en.globes.co.il - on July 29, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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