Israeli mobile operator Cellcom is considering a rights offering worth up to NIS150m (US$38.9m), the company has announced.
The company said its board of directors had asked it to consider the move as part of its efforts to strengthen its balance sheet….
Israeli mobile operator Cellcom is considering a rights offering worth up to NIS150m (US$38.9m), the company has announced.
The company said its board of directors had asked it to consider the move as part of its efforts to strengthen its balance sheet. According to local newspaper Globes, Cellcom’s parent company Discount Investment Corporation (DIC) opposes the rights offering.
Cellcom did not respond to a request for comment, while DIC was not immediately available.
Cellcom noted that it was not required to disclose this information, but that it was doing so because its controlling shareholder [DIC] was planning to report the possible move. If it does go ahead, the company said it would file with the SEC and Israeli Securities Authority.
The company said it would record a one-time expense of approximately NIS25m in the second quarter of 2015, in connection with a voluntary retirement plan.
In May, the company agreed two deferred loans worth NIS400m (US$103m).
Cellcom and rival Golan Telecom are trying to convince sector regulator the MOC to approve their agreed network JV, following approval of a similar deal between Hot Mobile and Partner Communications.
Network sharing agreements are seen as a precursor to M&A, currently not allowed under the country’s regulatory regime. The four operators, along with Orange, compete in a market of around 8 million.
