Elco enters race to buy Golan Telecom

Michael Golan  photo: Ariel Bliak

Elco is likely to join Gil Sharon's acquisition bid for the Israeli mobile operator.

Sources inform "Globes" that Elco Holdings Ltd. (TASE: ELCO) is interested in acquiring Golan Telecom Ltd.. The company is probably considering an investment together with former Pelephone Communications Ltd. CEO Gil Sharon, who is on close terms with Elco co-CEO and director Daniel Salkin.

Elco may prefer to operate under the radar, due to uncertainty about the sale process for Golan Telecom, given Golan Telecom owner Michael Golan's zigzags between selling the company and remaining in the local market.

It was recently learned that Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) has given Golan Telecom permission to negotiation the sale of the company with two groups. The agreement between Cellcom and Golan Telecom forbids the latter from selling the company to anyone else until this November.

The two groups in question, the Gil Sharon group and the Hezi Bezalel group, are conducting talks with Rothschild Bank, which is leading the process. They are in contact with Cellcom concerning the use of its network in the event that one of the groups acquires Golan Telecom. It is believed that the two groups are likely to join forces at the end of the process.

Informed sources said that Xavier Niel, Michael Golan's partner, was leading the process on behalf of Golan Telecom.

Published by Globes [online], Israel business news - www.globes-online.com - on September 18, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Michael Golan  photo: Ariel Bliak
Michael Golan photo: Ariel Bliak
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