Searchlight Capital Partners closes in on Bezeq as BCom board backs bid for stake

17 May 2019

US-based private investment firm Searchlight Capital Partners is reportedly closer to taking control of Israeli fixed line incumbent Bezeq, having submitted a revised bid offering a total equity investment of ILS330 million in B Communications (BCom) and a further ILS225 million in BCom’s parent company, Internet Gold.

As previously reported by CommsUpdate, in March 2019 Searchlight made a second bid to acquire a controlling stake in Bezeq’s parent company, offering to buy 19.4 million shares in BCom – which has just one asset in the form a 26.34% stake in the Israeli telco – for ILS20 (USD5.5) per share. It had a month earlier offered to buy the shares from BCom’s controlling shareholder Internet Gold at ILS17 per share, plus a further ILS8 per share contingent on meeting certain targets.

In the wake of the most recent offer, Reuters reports that BCom confirmed in a regulatory filing that it is satisfied with this, with the company cited as saying: ‘The board of directors is of the opinion that the amended proposal that was submitted properly balances the interests of all the relevant parties, solves legal disputes that might have complicated and delayed alternative solutions … and creates a worthy solution.’

Israel, Bezeq (Israel Telecommunication Corporation)