PARTNER COMMUNICATIONS ANNOUNCES THE CLOSING OF THE TRANSACTION BETWEEN THE RECEIVER OVER 49,862,800 OF THE COMPANY'S SHARES HELD BY S.B. ISRAEL TELECOM LTD. AND AMPHISSA HOLDINGS

Rhea-AI Summary

On April 4, 2022, Partner Communications Company Ltd. (NASDAQ: PTNR) completed the sale of 49,862,800 shares, representing approximately 27% of its issued capital, to Amphissa Holdings for USD 300 million. The shares were previously held by S.B. Telecom Ltd. The transaction received approval from the Minister of Communications, allowing institutional investors to exceed previous ownership limits in competing firms. The Phoenix group now holds more than 10% of Partner's control, in line with new regulations, making this a significant shift in the company's ownership structure.

Positive

• Completion of a significant share sale for USD 300 million enhances liquidity.
• Increased institutional investor presence may lead to stronger governance and market positioning.

Negative

• The Phoenix group's holdings in Partner exceed 10%, potentially raising competition concerns.
• Change in ownership dynamics may lead to conflicts of interest with Cellcom Israel, a competing operator.

ROSH HA'AYIN, Israel, April 4, 2022 /PRNewswire/ -- Partner Communications Company Ltd. ("Partner" or "the Company") (NASDAQ: PTNR) (TASE: PTNR), a leading Israeli communications operator, reports that, further to the Company's reports dated November 25, 2021, December 16, 2021, March 29, 2022 and Item 3D.3a in the Company's Annual Report for 2021 (20-F), on April 4, 2022, a transaction to acquire 49,862,800 of the Company's shares (the "Sold Shares") by Amphissa Holdings Limited Partnership ("Amphissa") was completed. As part of the transaction, the Sold Shares that constitute approximately 27% of the Company's issued and outstanding share capital, that were owned by S.B. Telecom Ltd. and were held by Adv. Ehud Sol, the permanent receiver over them, were sold and transferred to Amphissa, for a consideration of USD 300 million (the "Transaction").

To the best of the knowledge of the Company, the general partner of Amphissa is Israel Lighterage and Supply Co. Ltd., which is 50% owned by Mr. Shlomo Rodav and 50% owned by Mr. Ronnie Gat and members of his family, and the limited partners are mostly institutional investors from the Phoenix, Clal and Menora groups as well as M. Arkin (1999) Ltd. The Minister of Communications' approval dated March 29, 2022 (the "Approval") allows Mr. Avi Gabbay to join Amphissa in the future as a limited partner and as a general partner, directly or through a company under his control.

In addition, following the completion of the Transaction, the holdings of the Phoenix group in Partner, directly and indirectly in calculating its holdings as one of the limited partners in Amphissa, exceed 10% of the means of control in Partner. The said scope of holdings of the Phoenix group in Partner, in parallel with its holdings in Cellcom Israel Ltd., which is a competing MRT operator, is in accordance with the Approval and with the amendment to the Company's MRT license dated March 28, 2022 (the "License Amendment").

The License Amendment stipulates that an interested party in the Company that is a mutual fund, insurance company, investment company or pension fund ("Institutional Investor") may hold up to 10% of the means of control in a competing MRT operator under certain conditions (instead of holdings at a rate of up to 5% before the License Amendment) without having to receive the Minister of Communications' approval, and up to 25% of the means of control in a competing MRT operator under certain conditions, with the Minister's approval, if the Minister believes this will not harm the competition in the MRT market (instead of holdings at a rate of up to 10% before the License Amendment). 

About Partner Communications

Partner Communications Company Ltd. is a leading Israeli provider of telecommunications services (cellular, fixed-line telephony, internet and television services). Partner's ADSs are quoted on the NASDAQ Global Select Market™ and its shares are traded on the Tel Aviv Stock Exchange (NASDAQ and TASE: PTNR). 

For more information about Partner see: http://www.partner.co.il/en/Investors-Relations/lobby

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Contact:

Tamir Amar Deputy CEO & Chief Financial Officer Tel: +972 (54) 781 4951

Amir Adar Head of Investor Relations & Corporate Projects Tel: +972 (54) 781 5051 E-mail: investors@partner.co.il

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SOURCE Partner Communications Company Ltd.

FAQ

What was the transaction completed by Partner Communications on April 4, 2022?

Partner Communications completed a sale of 49,862,800 shares to Amphissa Holdings for USD 300 million.

How much of Partner Communications' shares were sold in the recent transaction?

Approximately 27% of the company's issued and outstanding share capital was sold.

What does the new ownership structure mean for Partner Communications?

The Phoenix group now holds more than 10% of Partner's control, which aligns with regulatory changes regarding institutional ownership.

Who are the key players involved in the share transaction for PTNR?

Amphissa Holdings acquired the shares from S.B. Telecom Ltd., with backing from institutional investors in the Phoenix, Clal, and Menora groups.

What regulatory changes were introduced regarding institutional investors in Partner Communications?

New rules allow institutional investors to hold up to 10% of control in competing firms without prior approval, and up to 25% with approval.