Cellcom Israel Ltd. Announces Developments Re. Controlling Shareholder

Rhea-AI Summary

Cellcom Israel Ltd. (NYSE: CEL) announced that a court approved the sale of approximately 82% of its indirect controlling shareholder, Discount Investment Corporation Ltd. (DIC), to a group led by Mega Or Holdings Ltd. This sale follows previous appointments of receivers for DIC’s shares, pledged to debenture holders of IDB Development Corporation Ltd. Approval from the Israeli Ministry of Communications is required for this transfer of control. The Company will report further developments as they occur.

Positive

• Court approval for sale of 82% of DIC's shares could lead to improved control structure.
• Potential for new investment from Mega Or Holdings Ltd.

Negative

• Transfer of control requires approval from the Israeli Ministry of Communications, which is pending.
• Ongoing receivership of DIC indicates financial distress.

NETANYA, Israel, Nov. 22, 2020 /PRNewswire/ -- Cellcom Israel Ltd. (NYSE: CEL) (the "Company") announced today that following its previous announcements regarding receivers appointed to the controlling shares of its indirect controlling shareholder, Discount Investment Corporation Ltd., or DIC, pledged in favor of debenture holders of IDB Development Corporation Ltd., the court approved the receivers' motion to sell the pledged DIC shares representing approximately 82% of DIC's share capital to a group of investors led by Mega Or Holdings Ltd., subject to further approvals as may be required by law. Pursuant to the Company's licenses such transfer of control requires the approval of the Israeli Ministry of Communications which is yet to be provided.

For additional details see the Company's current reports on Form 6-K dated September 23 and 27, 2020 and October 15, 2020.

The Company shall continue to report material developments, as and to the extent such developments occur.

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 cellular subscribers with a broad range of services including cellular telephony, roaming services, text and multimedia messaging, advanced cellular and data services and other value-added services in the areas of  mobile office, data protection etc., based on Cellcom Israel's technologically advanced infrastructure. The Company operates advanced networks enabling high-speed broadband and advanced multimedia services. Cellcom Israel offers nationwide customer service including telephone customer service, retail stores, and service and sale centers. 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.

For additional information please visit the Company's website http://investors.cellcom.co.il.

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

Investor Relations Contact Elad Levy Investor Relations Manager investors@cellcom.co.il Tel: +972-52-998-4774

 

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SOURCE Cellcom Israel Ltd.

FAQ

What recent development occurred regarding Cellcom Israel Ltd.'s controlling shareholder?

A court approved the sale of approximately 82% of Discount Investment Corporation Ltd.'s shares to investors led by Mega Or Holdings Ltd.

What percentage of shares is being sold in the recent court ruling involving Cellcom Israel?

The court approved the sale of approximately 82% of DIC's share capital.

Is the sale of DIC's shares to Mega Or Holdings Ltd. finalized for Cellcom Israel?

No, the transfer of control still requires approval from the Israeli Ministry of Communications.

What prompted the sale of Discount Investment Corporation Ltd.'s shares?

The sale follows the appointment of receivers for DIC's shares, which were pledged to debenture holders of IDB Development Corporation Ltd.

When was the press release about the sale of shares by Cellcom Israel issued?

The press release was issued on November 22, 2020.