Pelephone bids NIS 710m for Golan Telecom

Pelephone CEO Ran Guron  photo: Shlomi Yosef

Mobile telephony company Golan Telecom is in the midst of negotiations on an acquisition by Cellcom.

Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) mobile telephony unit Pelephone has announced a NIS 710 million bid for mobile carrier Golan Telecom. Golan Telecom is in the midst of negotiations with Cellcom on a sale for some NIS 600 million plus the waiver of a NIS 130 million loan that Golan Telecom took from Cellcom.

Pelephone is believed to be seeking to acquire Golan Telecom in order to become the largest mobile carrier in Israel and to thwart its rivals. The Competition Authority is however thought unlikely to approve a deal that would strengthen the Bezeq group's position in the market. Furthermore, Golan Telecom uses Cellcom's infrastructure and would have to pay a NIS 600 million penalty if it were to dissolve this relationship.

Pelephone is the only company in Israel's mobile market that does not share its network with another operator like Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) with Hot Mobile and Cellcom with Golan Telecom and Xfone. It therefore has to bear the very heavy costs of maintaining a network alone, which will be of critical significance in the 5G frequencies auction due to take place shortly.

Published by Globes, Israel business news - en.globes.co.il - on February 16, 2020

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

Pelephone CEO Ran Guron  photo: Shlomi Yosef
Pelephone CEO Ran Guron photo: Shlomi Yosef
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