Cellcom close to acquiring stake in wholesale fibre provider IBC?

1 Aug 2018

Israeli multi-service provider Cellcom is reportedly close to completing a deal which would see it take a majority stake in Israel Broadband Company (IBC), which trades under the Unlimited banner and offers wholesale broadband connectivity over the infrastructure belonging to Israel Electric Corporation (IEC).

According to local press outlet Globes, Cellcom is in advanced negotiations with all of IBC’s shareholders bar IEC, which is expected to retain its 40% stake in the wholesale operator. It is understood that Cellcom could acquire all shares held by the consortium led by ViaEuropa – representing a 60% stake in IBC – though it was noted that any deal would be subject to approval from the Ministry of Communications (MoC), as well as a revision of IBC’s operating licence which would lessen its deployment obligation, so as it would only be required to cover 40% of the population.

Meanwhile, the report adds that, if and when the deal is completed, Cellcom will subsequently focus on raising financing to continue IBC’s fibre rollout project, while the former has already indicated that it could add additional partners to the venture, with Partner Communications named as possible candidate.

Israel, Cellcom, Israel Broadband Company (IBC)