Channel 10 shareholders reach agreement with RGE

Len Blavatnik and Avi Giladi

RGE Group has still to secure financing from Bank Leumi for its takeover of the Israeli television channel.

The shareholders in Channel 10 television, including Arnon Milchan, have reached full agreement with the RGE group on the way the latter should take over the media company. The deal has still not been finalized, however.

At the end of all-night discussions, after the Second Broadcasting Authority granted a further 24-hour extension, the RGE representatives failed to reach agreement with Bank Leumi (TASE: LUMI) on the amount of the guarantees that RGE should provide in order for the bank to finance the deal, and on the mortgaging of the channel to the bank in the future.

Nevertheless, the sides hope to reach understandings on these matters today.

Sources inform "Globes" that, because the deal involves a media company, which is considered high risk, the bank is demanding high guarantees.

All the other parties have signed the contract under which the group headed by Aviv Giladi and Len Blavatnik will inject NIS 200 million into Channel 10 and will hold 51% of the shares. The other 49% will be held by current controlling shareholders Yosef Maiman and Arnon Milchan.

Published by Globes [online], Israel business news - www.globes-online.com - on June 2, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Len Blavatnik and Avi Giladi
Len Blavatnik and Avi Giladi
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