Israeli incumbent Bezeq has completed its NIS680m (US$179m) acquisition of the 50.2% of local DTH provider Yes that it did not already own. This follows the government’s go-ahead earlier this week.
Bezeq announced that it has transferred the cash…
Israeli incumbent Bezeq has completed its NIS680m (US$179m) acquisition of the 50.2% of local DTH provider Yes that it did not already own. This follows the government’s go-ahead earlier this week.
Bezeq announced that it has transferred the cash to Eurocom, a private holding company controlled indirectly by Bezeq’s indirect controlling shareholders Shaul and Yosef Elovitch.
The deal saw Bezeq acquire Eurocom’s equity in Yes, as well as the loans it had provided the company. A previous report suggested the enterprise value could be up to NIS1.05bn (US$280m).
In his capacity as interim communications minister, Prime Minister Benjamin Netanyahu’s green lit the deal, paving the way for a merger that has been years in the making.
Competition concerns had led regulators to shoot down Bezeq’s earlier attempt in 2009 to raise its stake to 58%. The move was also opposed at the time by Eurocom, which had yet to take control of Bezeq.
However, regulators said last year that technological improvements since then have made it easier for other players to compete with the combined group. They allowed Bezeq to increase its stake in YES to beyond 49.8% on certain conditions, which include limits on content exclusivity arrangements and the services that the merged group can offer.
Although the government has allowed Bezeq to buy 100% of YES, it wants a separate review to determine whether they can combine their operations structurally.
Bezeq may pay an additional NIS370m (US$99m) more based tax synergies and YES’ business performance.
Eurocom has been looking to offload its satellite assets in recent years. The group sold satellite transmissions group Satlink earlier this month for US$19m, and came close to selling its satellite operator Spacecom to Spain’s Hispasat last year.
