Cellcom set to buy Golan Telecom for NIS 750m

Gil Sharon and Avi Gabbay

Terms have been agreed between the two mobile phone companies. The merger will make Cellcom Israel's biggest mobile phone operator.

Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) is set to agree to buy Israel mobile phone rival Golan Telecom for NIS 750 million. Cellcom will pay Nis 620 million cash and wipe out the NIS 130 million that Golan Telecom owes Cellcom.

The boards of directors of both companies are currently meeting to approve the deal. "Globes" understands that all obstacles have been removed in the negotiations and the talks have been completed.

As "Globes" has previously reported, Cellcom has decided to take a gamble on Golan and kill two birds with one stone - expanding its subscriber base and thwarting the potentially larger merger between HOT Telecommunication Systems Ltd. (TASE: HOT) and partner.

If as expected, the Israel Competition Authority, approves the first merger in the country's struggling telecom sector, Cellcom will become Israel's largest mobile phone operator with 3.4 million subscribers, including Golan's 900,000 subscribers.

Golan Telecom was acquired two years ago by Electra Consumer Products (TASE: ELEK) for NIS 350 million.

Published by Globes, Israel business news - en.globes.co.il - on February 18, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Gil Sharon and Avi Gabbay
Gil Sharon and Avi Gabbay
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