Discount Investment Corp offloads 5% stake in Cellcom

30 Jun 2011

Discount Investment Corp (DIC), the controlling shareholder in Israeli mobile network operator Cellcom, has announced that it has sold a 5% stake in the cellco, Reuters reports. It is understood that Deutsche Bank initially acquired the 4.96 million shares before selling them on to non-US based institutional investors at ILS92.5 (USD27) per share, having paid ILS92 when purchasing them from DIC. Following the transaction DIC meanwhile has said it may approach the Israeli Securities Authority regarding whether or not this stake sale would allow it to stop consolidating Cellcom’s financial results. On the back of the stake sale DIC’s holding in Cellcom, which according to TeleGeography’s GlobalComms Database is the country’s largest cellco by subscribers, has fallen to 43.3% of the capital and 46.7% of the voting rights.

Israel, Cellcom