Israel’s Cellcom has won the race to acquire rival mobile network operator (MNO) Golan Telecom, announcing that it has entered a binding memorandum of understanding (MoU) with the latter company regarding its purchase.
In a press release regarding the matter, Cellcom confirmed that it plans to acquire all shares in Golan Telecom for a total consideration of ILS590 million (USD172 million), ‘subject to certain adjustments’; the payment is expected to be made in case in two instalments, with ILS413 million to be paid upon completion of the transaction and the balance (ILS177 million) to be paid within three years of that date. In addition, on the closing date of the transaction Cellcom has said that it will pay Golan shareholders: an amount equal to the cash and cash equivalents of Golan Telecom as of the closing date, minus any financial indebtedness; ILS7.58 million per month for the period between the closing date and 31 December 2020; and ‘return on investments made by Golan Telecom in the 5G shared network from the date the MOU was signed and until the transaction is completed’.
While both parties are now expected to negotiate a detailed final agreement, Cellcom has noted that, should the conditions for the completion of the transaction not be met by 31 December 2020, the MoU shall expire.
As previously reported by CommsUpdate, the race to acquire Golan Telecom heated up earlier this week, with the revelation that Pelephone had joined the list of potential suitors, while earlier in the month it had been reported that Partner Communications had also initiated talks with Golan over a possible deal.