Scailex, the main shareholder in Israel’s second largest mobile operator, Partner Communications, has hired Deutsche Bank and Paris-based Lazard Freres to evaluate options for both its own future and the potential sale of its stake in the…
Scailex, the main shareholder in Israel’s second largest mobile operator, Partner Communications, has hired Deutsche Bank and Paris-based Lazard Freres to evaluate options for both its own future and the potential sale of its stake in the subsidiary.
Scailex said in a statement to the Tel Aviv Stock Exchange it had instructed the banks to go on the look-out for potential acquirers, new investors for Partner and the possibility of turning the subsidiary into a privately held buisness.
According to the statement, Deutsche Bank would provide a line of credit of up to US$1bn for a potential transaction.
Scailex bought its 44.5% stake in Partner in 2009 for $1.38bn. Today, Partner has a market cap of about US$1.3bn.
As reported earlier, Scailex’ debt is estimated at more than US$781m. Additionally, ratings agencies Standard & Poor’s and Moody’s Investors Services have downgraded its debt grading in recent months, citing inadequate liquidity.
