Searchlight set to buy control of Bezeq

All the business and legal aspects for the acquisition of a controlling interest in Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) by Searchlight have already been agreed. A final draft contract for signing will be reported in the coming days, probably before the Shavuot holiday.

The draft agreement will available to all of the bondholders and shareholders of B Communications Ltd. (Nasdaq:BCOM; TASE: BCOM) and Internet Gold Golden Lines Ltd. (Nasdaq: IGLD; TASE:IGLD) for all of next week. The vote on approving the contract is scheduled for Sunday, June 16.

If the bondholders approve the deal, the two companies will sign the contract for the sale of the controlling interest in Bezeq on the following day. The signed contract will then be submitted for approval by the court in the framework of the Internet Gold debt settlement, and by the Ministry of Communications for the issuing of a control permit for Bezeq to Searchlight.

It will be interesting to see how long it takes the Ministry of Communications to issue a control permit for this deal. On the one hand, the fact that there is no permanent government is liable to delay the process. On the other hand, Searchlight already has obtained a kind of pre-ruling from the Ministry of Communications. The fact that the request will be submitted to the court in the framework of a debt settlement with the public's money in the balance is also likely to expedite the process and make it easier.

Searchlight is due to announce its Israeli partner for Bezeq this week. Two of the three main candidates are still Zvika Barenboim and Eyal Greenberg.

Published by Globes, Israel business news - en.globes.co.il - on June 4, 2019