Israeli telco Bezeq has been given regulatory permission to raise its stake in local DTH firm YES to beyond 49.8%.
The country’s antitrust authority said it would allow a merger between the two companies, which both have ties to privately-owned…
Israeli telco Bezeq has been given regulatory permission to raise its stake in local DTH firm YES to beyond 49.8%.
The country’s antitrust authority said it would allow a merger between the two companies, which both have ties to privately-owned holding Eurocom, after attaching a number of conditions to the deal.
These conditions include limits on content exclusivity arrangements and the services that the combined group can offer.
Competition concerns caused regulators to shoot down an earlier move by Bezeq to raise its stake to 58% back in 2009, following resistance from YES shareholder Eurocom, which owns the 50.2% that the telco does not.
But since then Eurocom has taken control of Bezeq through an indirect subsidiary.
Israel’s competition authority said today that technological improvements since Bezeq’s rejected stake rise have also changed the market, making it easier for other players to challenge a combined Bezeq/YES. It said there are a number of potential competitors that are poised to enter the TV market.
Eurocom, controlled by Israeli tycoon Shaul Elovitch, also has stakes in Israeli satellite operator Spacecom and service provider Gilat
SatelliteFinance understands that JP Morgan has been hired to run a sales process for Spacecom, and the group is reportedly seeking US$500m-US$600m.
Hong Kong’s AsiaSat and Spanish satellite operator Hispasat are bidding for the group, with the latter in the final stages of taking a majority stake, according to reports.
Hispasat is owned by Spanish infrastructure giant Abertis, which took a 16.42% stake from the country’s government last year to assume control of the operator with a holding of 57.05%.
However, Abertis is also rumoured to be looking to exit Hispasat.
