Following reports last week that two companies had shown a strong interest in up-for-sale Israeli telco Golan Telecom, an unnamed group of investors has withdrawn from the process, with local cellular provider Cellcom noting that Marathon 018 Xfone is now the sole bidder for the stake.
As previously reported by TeleGeography’s CommsUpdate, Golan Telecom is said to be keen to conclude a sale before an outstanding debt of ILS600 million (USD160 million) to Cellcom is due in November; the payment is for Golan’s use of Cellcom’s infrastructure. In November 2015 Cellcom entered into an agreement with Golan’s shareholders to acquire a 100% stake in the company for ILS1.17 billion, but in April this year the Israeli Antitrust Authority (IAA) and the Ministry of Communications (MoC) blocked the deal on competition grounds. Mobile market leader Cellcom then said it was working on an agreement that would allow Golan to continue to use its mobile networks, but in June another firm, HOT Mobile, revealed it was negotiating its own ten-year roaming deal with Golan. Cellcom has said that if the deal with HOT proceeds, it would terminate their share purchase agreement (SPA) and demand compensation of ILS600 million plus VAT as defined in that agreement, as well as the recovery of ILS300 million worth of discounts it provided Golan under their National Roaming Agreement (NRA).