Cellcom, NetVision shareholders sign off on merger plans

29 Jul 2011

Shareholders of Israeli mobile network operator Cellcom and local internet service provider (ISP) and international call carrier NetVision have reportedly approved plans for the merger of the two companies, according to Globes Online. It is understood that the Ministry of Communications has also given the go-ahead for the tie-up of the duo, both of which are already controlled by the same company, Discount Investment Corporation (DIC), which is in turn a subsidiary of Nochi Dankner’s ID Holding Corp. Cellcom CEO Amos Shapiro will head up the combined entity, and commenting on the merger in a letter to Cellcom and NetVision managers, Shapiro noted: ‘Creating better competitiveness and growth is the merger’s primary objective. The merger of two organisations of the size of Cellcom and NetVision is complicated, as it involves companies whose employees are people with desires, aspirations, and understandable fears, whom we must take into account every hour of every day.’

As previously reported by CommsUpdate, last month Cellcom announced that it would acquire NetVision and merge the operations of the latter with its own. Under the terms of the deal Cellcom said it would pay ILS1.54 billion (USD444.7 million) in order to take control of NetVision’s operations, while the mobile operator also agreed to pay NetVision 5% interest on the purchase price from 1 April 2011 – just after the two companies entered into negotiations regarding a potential tie-up – until the date on which the acquisition is completed.

Israel, Cellcom, NetVision