Cellcom issues ILS1.7 billion dividend

10 Jan 2006

Israeli mobile operator Cellcom has issued an ILS1.7 billion (USD367 million) dividend, which majority shareholder Discount Investment Court (DIC) says will be used to repay the loan it took out to take over the cellco last year. In August 2005 DIC, a subsidiary of Nochi Dankner’s IDB Holdings and then a 25% investor in Cellcom, entered negotiations with Brazil’s Safra Group to buy its 34.75% stake in the company. DIC had earlier agreed to buy a 34.75% stake in Cellcom held by BellSouth of the US, but the deal was delayed as Safra had first right of refusal on the shares. Following completion of both deals DIC has a 94.5% holding in Cellcom.

Israel, Cellcom