Israeli Competition Commissioner approves HOT’s investment in IBC

21 Jan 2021

Cellcom has confirmed that the Israeli Competition Commissioner has given its approval to a proposed investment transaction between it, the Israel Infrastructure Fund (IIF) and Hot Telecommunication Systems, in fellow operator Israel Broadband Company (IBC).

As previously reported by CommsUpdate, in September 2020 Cellcom announced that, together with IIF, it had entered into an investment transaction with HOT comprising ‘several agreements’, the first of which centred on investment agreements struck between the partnership through which Cellcom and IIF hold 70% of IBC’s share capital. Under these, HOT will become an equal partner in the IBC Partnership, and hold indirectly 23.3% of IBC’s share capital, ‘by making an investment substantially equal to the investment made by each of [Cellcom] and IIF until the closing date of the transaction’.

Now, although the Israeli Competition Commissioner has given the green light to the deal, Cellcom noted that the completion of the transaction remains subject to certain conditions, including the approval of the Ministry of Communications (MoC) and regulatory changes, which are yet to be met.

Israel, Cellcom, HOT Telecommunication Systems, Ministry of Communications