Saidoff's Eurocom bid submitted for court approval

Nati Saidoff Photo: PR

Unless there is a dramatic new bid, Naty Saidoff will take over Eurocom, leaving Shaul Elovitch with no holding in the group that controls Bezeq.

While Eurocom owner Shaul Elovitch is under arrest, it seems that he is about to lose control of the group, which controls Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ), to Naty Saidoff. After Eurocom's creditors approved the debt arrangement with Saidoff early last week, the arrangement was submitted for court approval at the end of the week. The hearing will probably take place within the next two weeks, and unless a dramatic new offer emerges (which seems unlikely) Eurocom will be taken over by Saidoff. Saidoff's original proposal would have left Elovitch with 10% of Eurocom, but at the last minute, under pressure from the banks, it was changed to leave Elovitch with no holding in the group.

Eurocom Communications' three main creditors, Israel Discount Bank (TASE: DSCT), Bank Hapoalim (TASE: POLI), and First International Bank of Israel (TASE: FTIN), approved the arrangement at the beginning of last week, and understandings have also been reached with the consortium of lenders to Eurocom Real Estate headed by Mizrahi Tefahot Bank (TASE:MZTF). The main outstanding question is the taxation consequences of the debt arrangement, but Saidoff has undertaken that he and not the banks will absorb any tax payment that might result.

The banks will write off NIS 400-500 million owed by Eurocom. Saidoff will pay the banks NIS 400 million in instalments, and the banks will receive bonds which will be convertible to shares after Saidoff receives a permit to control Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) and Spacecom Satellite Communications Ltd. (TASE:SCC). Saidoff has also taken on debt of NIS 350 million, to be repaid over seven years.

The banks are also engaged in the sale of the operational units of the Eurocom group. An auction is due to be completed by the end of the week. The banks expect to receive tens of millions of shekels from the sale.

Published by Globes [online], Israel business news - www.globes-online.com - on February 25, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Nati Saidoff Photo: PR
Nati Saidoff Photo: PR
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