Cellcom Israel Ltd. Announces Developments re. Controlling Shareholder

Rhea-AI Summary

On October 15, 2020, Cellcom Israel Ltd. (NYSE: CEL) reported that the Ministry of Communications has approved the appointment of receivers for shares of its indirect controlling shareholder, Discount Investment Corporation Ltd. (DIC). These shares represent approximately 70% of DIC's capital. Additionally, a court has approved the appointment of permanent receivers and a temporary receiver for another 12% of DIC's shares. The receivers will also publish an invitation for offers to purchase the pledged shares. The company will continue to update on material developments.

Positive

• The court approved the appointment of receivers for significant pledged shares, potentially stabilizing the control structure.
• The receivers will invite offers for the purchase of pledged shares, which could attract potential investors.

Negative

• The involvement of receivership actions indicates financial instability concerning the controlling shareholder.
• The situation may lead to uncertainty and volatility in stock performance as it raises concerns about the company's governance.

NETANYA, Israel, Oct. 15, 2020 /PRNewswire/ -- Cellcom Israel Ltd. (NYSE: CEL) (the "Company") announced today that following its previous announcements regarding receivership actions taken in relation to its indirect controlling shareholder, Discount Investment Corporation Ltd., or DIC's  shares, pledged in favor of the debenture holders of IDB Development Corporation Ltd., or IDB, the Ministry of Communications granted its approval to the previously reported appointment of receivers to the pledged DIC shares representing approximately 70% of DIC's share capital. In addition, the court approved their appointment as permanent receivers and the appointment of  temporary receiver to additional pledged DIC shares representing approximately 12% of DIC's share capital. The court further approved the publication by the receivers of an invitation to make offers for the purchase of the pledged DIC shares.

For additional details see the Company's current reports on Form 6-K dated September 23 and 27, 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 approximately 2.734 million cellular subscribers (as at June 30, 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
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

 

View original content:http://www.prnewswire.com/news-releases/cellcom-israel-ltd-announces-developments-re-controlling-shareholder-301153400.html

SOURCE Cellcom Israel Ltd.

FAQ

What recent developments occurred with Cellcom Israel Ltd. (CEL) regarding its controlling shareholder?

On October 15, 2020, it was announced that the Ministry of Communications approved receivership actions for shares of Discount Investment Corporation Ltd., which controls Cellcom.

What percentage of Discount Investment Corporation's shares are under receivership related to Cellcom Israel (CEL)?

Approximately 70% of Discount Investment Corporation's shares are currently under receivership.

How might the receivership of DIC's shares affect Cellcom Israel's stock (CEL)?

The receivership may create uncertainty regarding Cellcom's governance and could lead to stock price volatility.

What is the significance of the court's approval for Cellcom Israel Ltd. (CEL) on October 15, 2020?

The court's approval allows for the appointment of permanent receivers, potentially stabilizing governance but indicating financial instability.

Is Cellcom Israel (CEL) planning to provide further updates on its situation?

Yes, Cellcom Israel has stated it will continue to report on material developments as they occur.