Israeli holding group Discount Investment Corporation (DIC) has agreed to sell a 5% stake in mobile operator Cellcom to Bank Leumi, Israel’s second largest bank, for USD72 million. Upon completion of the deal, DIC’s stake in Cellcom will be reduced to 80.5%. The transaction is part of Discount’s aim to sell off pieces of Cellcom after it raised its stake in the company to 94.5% in September 2005.
In March DIC sold a 4% stake in the operator to Migdal Insurance and Financial Holdings (MGDL) for USD57.4 million. The sale came hot on the heels of the sale of a 5% stake in Cellcom to the Goldman Sachs Group. Cellcom posted a 22% decline in net profit for 2005.