The deal for the sale of Golan Telecom was signed at 3:00 am today. Simultaneous deals were signed with Electra Consumer Products, the buyer, and with Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL), which will continue to host Golan Telecom on its network.
Michael Golan signed on behalf of the Golan shareholders for the sale of the company for NIS 350 million. Cellcom is lending Electra NIS 130 million to finance the deal. In addition, Electra is borrowing NIS 140 million from a local bank. It will finance the remainder from its own resources.
Electra signed a 10-year network unification agreement with Cellcom, for which it will pay NIS 200 million annually. The long-term agreement replaces the NIS 600 million debt owed by Golan to Cellcom.
Final closing of the deal is subject to regulatory approvals. As previously reported, former Pelephone CEO Gil Sharon is led the deal for the Elco Holdings Ltd. (TASE: ELCO) group, which owns Electra Consumer Products, and he will become chairman of Golan Telecom.
Cellcom CEO Nir Sztern said, "Cellcom congratulates Electra Consumer Products on the acquisition of Golan Telecom and its entry into the telecommunications industry. The joint network agreement enables Cellcom to continue to lead the Israeli mobile telephony market and to continue investing in the technologies of the future."
Published by Globes [online], Israel business news - www.globes-online.com - on January 3, 2017
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