Hot wants to buy Partner for NIS 3 billion; Cellular shares leap – the capital market

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Patrick Drehi, Hot Control Owners, Photo: Rami Zeranger; PR

Hot company, controlled by businessman Patrick Darhi, has submitted an offer to acquire all of the company’s shares


partner
+ 6.07%




partner


Base:1,498

opening:1,550

Tall:1,595

low:1,548

exchange:12,127,181

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, In exchange for about NIS 3 billion. The offer includes both public shares and Hong Kong-based Hutchison shares, whose shares are currently held by a receiver.

The goal, of course, is to merge the telecommunications company, which has a network agreement with Hot, into the company. According to its latest reports, Partner has 2.65 million mobile subscribers and 1.76 million subscribers to Partner TV – which is unclear as to what will happen if and when the merger is approved. The company also has NIS 956 million in debt.

On the face of it, this will be a significant boost to the cellular sector and will put some stability into the industry that has been in turmoil for over 6 years, after the then Minister of Communications, Moshe Kahlon, in 2013 led the reform that introduced fierce competition into the cellular market and turned the market into a price slump.

The merger, if approved by the Competition Authority, opens a gap for the merger of other companies, ie anticipation of a decline in the level of competition in the telecommunications market and a rise in prices, in addition to operational improvements as a result of exploiting economies of scale, consolidating staff and exploiting synergies.

Against the background of the report, Partner’s share now jumps 4.7% to market value of about NIS 2.9 billion (down by 4.3% of the intended value of the transaction),


Cellcom
+ 4.22%




Cellcom


Base:1,232

opening:1,260

Tall:1,315

low:1,257

exchange:11,137,011

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Jumps 4.6% against the expectation of possible merger with Golan Telecom and stock


flash
+ 2.75%




flash


Base:265

opening:265

Tall:276

low:264.9

exchange:13,087,887

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Rising 2.4%.

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