Hutchison Whampoa calls off Partner stake acquisition

21 Aug 2012

Hong Kong-based Hutchison Whampoa has revealed that offers by two of its associated companies to acquire a 75% stake in Israeli mobile network operator Partner Communications will not move forward. Persall Pte Ltd and Kelburgh Pte Ltd have reportedly terminated the conditional agreement entered into on 5 June 2012 to acquire from Suny Electronics Limited 50% and 25% respectively of the share capital of Israeli handset distributor Scailex Corp, which owns 44.5% of the share capital of Partner. In revealing the development, a press release issued by Hutchison Whampoa noted: ‘The termination by Persall and Kelburgh was in exercise of their rights under the agreement on the grounds that conditions under the agreement have not been fulfilled.’

In June 2012 CommsUpdate reported that, having sold its holding in Partner less than three years earlier, Hutchison Whampoa was set to pay USD125 million for 75% of Scailex from Suny. The agreement would also have seen Suny acquire the import and marketing operations of Samsung cellular products from Scailex for USD100 million. Commenting on the development, Dan Eldar, a representative of Hutchison based in Israel, noted that Partner was ‘not a cheap buy’, but said that it was premature to discuss business strategies for the company.

Israel, CK Hutchison, Partner Communications Company