Partner to buy 012 Smile for ILS1.49 billion

18 Oct 2010

Israeli mobile network operator Partner Communications has reportedly entered into a definitive share purchase agreement with Ampal-American Israel Corporation for the latter’s outstanding holding in 012 Smile.Communications. According to MarketWatch, Ampal will sell the entire stake in 012 Smile which is currently held through its wholly owned subsidiary Merhav-Ampal for around ILS692 million (USD191 million), of which ILS42 million will be paid by way of 012 Smile assigning payments due from a third party. In addition, as part of the transaction Partner will also assume approximately ILS800 million of long-term debt making the total value of the deal including both cash and debt ILS1.49 billion. The sale is expected to close in the next two to three months, although it is subject to regulatory approval from both the Israeli Ministry of Communications and the country’s Antitrust Commissioner. Yosef Maiman, chairman and CEO of Ampal, said of the deal: ‘012 is one of the major pillars of the Israeli telecommunication market, with a strong business which provides a steady cash flow and holds many diverse growth opportunities… The purchase of 012 by Partner and the potential growth of 012 due to the purchase, will surely benefit the Israeli telecommunication market, including the Israeli end-user.’

Israel, 012 Smile Telecom, Partner Communications Company