Zeevi Group to sell 5.84% stake in Bezeq

11 Aug 2009

Holding company Zeevi Group will sell 155 million shares in Israeli incumbent telco Bezeq, representing a 5.84% stake in the operator, Globes Online reports. The shares will be sold for ILS7.43 (USD1.92) per share, generating around ILS1.15 billion. Trading in Bezeq shares was suspended on the Tel Aviv Stock Exchange pending the formal announcement of the stake sale by Bezeq. The sale comes following a reported police investigation into alleged irregularities of the Zeevi Group’s acquisition of its 17.75% stake in Bezeq. Swiss bank UBS will oversee the sale.

Additionally Bezeq has announced that the Apax-Saban consortium has sold 5.64% of its holding in Bezeq for ILS1.2 billion. The sale was prompted by the rise in Bezeq’s share price after the Apax-Saban group exercised an option to buy 10% equity last year at ILS3.8 per share, raising its stake to 40.66%; it sold the 5.64% stake at ILS7.5 per share. It is believed that most of the shares will go to unnamed institutions.

Israel, Bezeq (Israel Telecommunication Corporation)