/Searchlight persists with bid for Bezeq parent

Searchlight persists with bid for Bezeq parent

Zeevi’s bid is higher, but Searchlight’s bid provides more immediate cash.

The Searchlight investment fund is continuing its effort to acquire Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ), despite remarks from the fund about withdrawing from competition. Following the bid submitted by businessman Gad Zeevi to acquire Bezeq, Searchlight is offering to acquire Internet Gold’s shares in Bezeq controlling shareholder B Communications for NIS 235 million: NIS 165 million in cash and NIS 60 million in B Communications shares.

Zeevi’s bid was NIS 300 million, plus additional payment if Bezeq’s share price rises.

Internet Gold’s bondholders will receive NIS 235 million from Searchlight. Internet Gold also has NIS 136 million in cash, making a total of NIS 371 million for the bondholders. The bid is lower than Zeevi’s but unlike that bid, which includes long-term bonds to be issued, Searchlight’s bid consists of immediate cash.

Sources inform “Globes” that the two bids will be discussed at tomorrow’s meeting of Internet Gold’s bondholders, which will decide which of them to negotiate with and which should be given a period of exclusivity to reach a binding agreement for the sale of control in Bezeq.

It is believed that Internet Gold’s bondholders will prefer Zeevi’s bid. Searchlight’s bid will provide NIS 250 million in a new share issue, while Zeevi’s bid amounts to NIS 350 million. It is obvious that the higher bid will be preferable.

Published by Globes, Israel business news – en.globes.co.il – on April 10, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019


Bezeq Photo: Reuters

Bezeq Photo: Reuters