Cellcom shareholder pushes ahead with takeover of Eurocom

Israeli operator Cellcom said that its indirect controlling shareholder, the Discount Investment Corporation (DIC) has submitted a binding inclusive creditors arrangement proposal in the Eurocom group, which includes the purchase of certain holdings of Eurocom group and an investment in Eurocom itself. The deal is dependent on DIC divesting its stake in Cellcom.

The proposal is subject to certain preconditions, including the receipt of Eurocom's creditors’ approval and court approval, by 04 March and 14 March respectively. The proposal is also subject to the receipt of all regulatory approvals, including the ministry of communications and the Prime Minister of Israel clearing the deal for any impact on the licenses and authorizations related to Eurocom's control of Bezeq.

The Antitrust Commissioner must also approve the deal and already informed DIC that it must sell its holdings in Cellcom before execution of the creditors arrangement. DIC further clarified that there is no assurance that the proposal will be accepted, approved and executed, due to various factors which are not under DIC's control.