The receiver of the controlling shares in Partner sharply attacked Haim Saban for his opposition to the sale of the controlling shares in the communications company, which was signed about two weeks ago.
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Sol wants to reject Saban’s request and approve the sale of the shares to the group, led by Avi Gabay, Shlomo Rodev and the Phoenix.
Moreover, he requests that Saban provide an autonomous guarantee for a high amount to cover the damages that will be caused to Hutchison if no approval is obtained for the sale. Sol claims that the tender process will take many months and harm the interests of Hutchison, who owes Saban $ 300 million.
In a response submitted today by Sol to the court, he claims that already at the time of the convening, Saban agreed to sell the controlling shares in Partner without a tender procedure, and that the convening procedure will be conducted by way of debt swap in shares.
Sol also claims that Adam Chezenoff, Saban’s business manager, and the lawyer Danny Geva, who represents him, were partners in negotiations with the Apollo Fund to purchase the shares, even without a tender.
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Adv. Ehud Sol
(Photo: Yair Sagi)
“There is no doubt that the commissioner came to her conclusions, among other things, in light of her position regarding the debtor’s objection was formulated before she met the receiver’s response. The objection includes serious misrepresentation, including omission of material facts. The full and correct, and not the false representations woven into the opposition, “Sol wrote.
Sol severely attacks Saban, who did not attach an affidavit of opposition. “The facts alleged in the opposition They are fictional. The HtOpposition also lacks essential facts. “
The market value of Hong Kong Investment Company Hutchison is about $ 25 billion. It operates in about 50 countries around the world and employs over 300,000 people. The company provides mobile communication services to more than one hundred million subscribers in 11 countries worldwide.
Hutchison, who controlled Partner, sold it in 2009 to Ilan Ben Dov in a deal that included a seller’s loan of NIS 300 million. Ben Dov later sold the shares to Saban in a deal that transferred the debt to him.
In November 2019, Saban decided not to repay the debt, and to give up the controlling shares in Partner, which he provided as a guarantee to Hutchison as part of the transaction. Hutchison, who did not receive a partner control permit from the Ministry of Communications, decided to sell Partner shares, but until the decision was made the shares were transferred to a meeting and Sol was appointed as a receiver on behalf of the court.
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Haim Saban
(Photo: EPA)
Two weeks ago, Sol signed a deal to sell the shares for $ 300 million to a group led by Avi Gabay, Shlomo Rodev and the Phoenix Company.
Saban objected to the deal, which was submitted to the court for approval, arguing that the shares should be sold in a tender process. Saban’s debt with interest to Hutchison has meanwhile swelled to NIS 1.23 billion and Sol claims that this is the amount that Saban will be required to repay to Hutchison if the deal fails. Rodev and Gabay’s offer is valid until December 15.
Sol rejects Saban’s claim that Sol should have used an investment bank to sell the shares. Sol claims to have at his disposal a bank that specializes in the best investment in the world in the field of communications – namely Hutchison itself. Hutchison did refer to Sol various inquiries that came to it from potential bidders, including the foreign fund that he does not name, but it is the Apollo Fund. Until a month ago, Apollo negotiated the acquisition of control of Partner, and withdrew from it due to fears that it would not receive a control permit.
‘Saban’s company is an empty vessel, an abstract entity (no one is willing to support its claims in the affidavit). This empty entity seeks, in effect, to gamble with the money of creditor Hutchison. This is after she refused to pay her debt to the secured creditor, “Sol wrote.
He added that refusing Gabay and Rodev’s takeover bid would result in a delay of many months in the entire exercise process, and that the shares were exposed to many risks such as capital market movements and regulatory changes. According to Sol, the uncertainty hurts both Hutchison and Partner herself, who cannot formulate a managerial strategy in the current situation. “Saban’s power and ability is not liable for damages and losses that would be incurred if its claims were accepted.”
“Already at the time of the opening of the proceedings, the debtor, Saban Group, agreed that the proceedings would be held by replacing the secured debt with shares, and without a tender procedure,” says Sol. Saban’s lawyer.
“The debtor gave her consent to this procedure, passed on to the receiver (through a lawyer from the Meitar office) information required to carry out this transaction and even met through her counsel with the receiver and in connection with the transaction. The debtor’s objection is Extreme good faith, which even misleaded the commissioner, “Sol wrote.
Sol’s reaction actually leads to a difficult confrontation between him and Saban and his business manager Adam Chesnoff, which will lead to the legal hearing that is expected to take place on the issue. The court will be required to decide whether to hold a tender or approve the deal.
The Saban group said: “The receiver presents a false picture and continues to mislead the court.”
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