Until a moment ago, the CEO of Cellcom, Avi Gabay, abruptly resigned and joined a group of investors together with Shlomo Rodev – chairman of Bitan Wines, in order to acquire the controlling shares in the communications company Partner in a deal worth $ 300 million.
The deal was signed a short time ago with Hutchison from Hong Kong for 27.1% of Partner’s shares, in front of the group of investors headed by Avi Gabay, Shlomo Rodev, and other investors including Menora, Clal Insurance, Phoenix and the Mori Arkin Fund. Gabay and Rodev will hold 10% of the shares and receive financing from institutional investors of about NIS 95 million.
As you may recall, Hutchison was unable to obtain a control permit and therefore transferred the shares to a trustee. Gabay-Rodev are expected to receive a permit, so it seems that the deal will be completed relatively quickly. However, it should be noted that although Hutchison received the offer from Gabay-Rodev, the deal itself still needs to get the approvals from the regulatory bodies as well as the Ministry of Communications.
Will the new buyers be able to increase Partner’s profitability? At the moment, there are estimates that it will not be possible to make the company profitable on television, but it is through raising revenue from cellular subscribers, when it will be possible to sell the company at a profit in the coming years.
The Partner Workers’ Committee was quick to welcome the deal, with the Ofek Foundation Chairman of the Partner Workers’ Committee issuing a statement that: “The Partner Workers’ Committee congratulates the new acquisition group on the completion of the deal. We expect that in the coming days negotiations will be opened with the employees about their part in the company’s sales grant. ”
Avi Gabay has been part of the communications market for quite a few years when he served as CEO of Bezeq. Which was supposed to allow the company to move into another managerial era.
Mori Arkin is one of the active investors in the Israeli economy. He holds a large package of shares in Bank Hapoalim and Leumi, as well as in a direct insurance company. Arkin made his fortune from the sale of Agis, which traded drugs to Israel, to Perrigo, and has since made a series of deals, some as “rounds” such as the investment in Bezeq and some as strategic deals, such as Poalim and Leumi.
Arkin is considered one of the serious investors in the capital market and has familiarity with the Israeli communications market, so if he invests in a partner, he can only do her good and give her managerial peace after she recently replaced a CEO (Itzik Benvenisti with Avi Zvi) in a strange procedure.
Comments on the article(1):
Your response has been received and will be published subject to system policies.
For a new response
Your response was not sent due to a communication problem, please try again.
Return to comment