Cellcom Israel Announces Israeli Ministry Of Communications' Approval For Purchase Of Golan Telecom

Rhea-AI Summary

Cellcom Israel Ltd. (NYSE: CEL) announced that the Israeli Ministry of Communications has approved the purchase of Golan Telecom, following a binding memorandum of understanding and prior approval from the Israeli Competition Authority. The transaction is subject to certain conditions that Cellcom is currently evaluating. This acquisition could enhance Cellcom's position in the competitive Israeli telecommunications market, aiming to expand its customer base and service offerings.

Positive

• Acquisition of Golan Telecom could expand customer base.
• Ministry of Communications approval indicates regulatory support.

Negative

• Transaction is subject to conditions, adding uncertainty.

NETANYA, Israel, Aug. 13, 2020 /PRNewswire/ -- Cellcom Israel Ltd. (NYSE: CEL) (TASE: CEL) (hereinafter: the "Company") announced today that following its previous announcement regarding a binding memorandum of understanding for the purchase of Golan Telecom and approval of the transaction by the Israeli Competition Authority, the Israeli Ministry of Communications, approved the transaction subject to certain conditions. The Company is evaluating the conditions.

For additional details see the Company's most recent annual report for the year ended December 31, 2019 on Form 20-F, filed on March 23, 2020, under "Item 4. Information on the Company – A. History and Development of the Company -– Our History" and the Company's current reports on Form 6-K dated June 10, 2020 and July 17, 2020.

About Cellcom Israel

Cellcom Israel Ltd., established in 1994, is a leading Israeli communications group, providing a wide range of communications services. Cellcom Israel is the largest Israeli cellular provider, providing its approximately 2.747 million cellular subscribers (as at March 31, 2020) with a broad range of services including cellular telephony, roaming services for tourists in Israel and for its subscribers abroad, text and multimedia messaging, advanced cellular content and data services and other value-added services in the areas of music, video, mobile office etc., based on Cellcom Israel's technologically advanced infrastructure. The Company operates an LTE 4 generation network and an HSPA 3.5 Generation network enabling advanced high speed broadband multimedia services, in addition to GSM/GPRS/EDGE networks. Cellcom Israel offers Israel's broadest and largest customer service infrastructure including telephone customer service centers, retail stores, and service and sale centers, distributed nationwide. Cellcom Israel further provides OTT TV services, internet infrastructure and connectivity services and international calling services, as well as landline telephone services in Israel. Cellcom Israel's shares are traded both on the New York Stock Exchange (CEL) and the Tel Aviv Stock Exchange (CEL). For additional information please visit the Company's website http://investors.cellcom.co.il.

Company Contact Shlomi Fruhling Chief Financial Officer investors@cellcom.co.il Tel: +972-52-998-9735

Investor Relations Contact Ehud Helft GK Investor & Public Relations cellcom@gkir.com Tel: +1 617 418 3096

 

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SOURCE Cellcom Israel Ltd.

FAQ

What did Cellcom Israel announce on August 13, 2020?

Cellcom Israel announced the approval from the Israeli Ministry of Communications for the purchase of Golan Telecom, subject to certain conditions.

How will the approval of Golan Telecom affect CEL stock?

The approval could potentially enhance CEL's market position, but conditions attached to the approval may introduce risks.

What is the significance of the Golan Telecom acquisition for Cellcom Israel?

The acquisition could broaden Cellcom's service offerings and customer base in the competitive Israeli telecommunications market.

What regulatory body approved Cellcom Israel's transaction?

The Israeli Ministry of Communications approved the transaction.

Is the acquisition of Golan Telecom finalized?

No, the acquisition is approved but remains subject to certain conditions that Cellcom is evaluating.