News
Former Pelephone CEO, fixed-line telco 018 Xfone reportedly in the frame as Golan looks for quick sale.
Israeli mobile operator Golan Telecom is looking for a quick sale and has attracted interest from two groups, one led by former Pelephone CEO Gil Sharon, and another that includes Hezi Bezalel, the owner of fixed-line telco 018 Xfone.
Local news outlet Globes reported on Sunday that Golan’s rival Hot Mobile has also shown interest but would likely face stiff opposition from competition authorities reluctant to allow the mobile market to consolidate.
According to the report, Sharon and Bezalel were considering a joint bid for Golan, but have now decided to act independently.
Golan Telecom is said to be keen to secure a deal before it is due to pay 600 million shekels (€141.9 million) to market leader Cellcom as part of a network-roaming deal between the two that expires in November.
Cellcom had agreed to acquire 100% of Golan Telecom for ILS1.17 billion in November 2015, but it failed to secure regulatory backing. The proposed transaction made provision for the continuation of the operators’ network-roaming arrangement; however, Golan Telecom pursued a network deal with Hot Mobile instead, effectively breaking its agreement with Cellcom.
Cellcom successfully petitioned a district court to block Golan’s proposed deal with Hot. Golan filed an appeal with Israel’s Supreme Court, which also sided with Cellcom, according to a statement issued by Cellcom dated 4 September.
