Internet Gold fails to get binding offers for BCom stake (updated)

B Communications

16/01/2019 09:12

(Adds details)
    JERUSALEM, Jan 16 (Reuters) - Internet Gold-Golden Lines's
 IGLD.TA   IGLD.O  latest attempt to sell its holdings in the
parent company of Bezeq Israel Telecom  BEZQ.TA  has failed.
    It received no binding offers for its holdings in B
Communications  BCOM.TA , which controls Bezeq, Israel's largest
telecoms group, in an auction that ended on Tuesday, it said in
a U.S. regulatory filing.
    Internet Gold is controlled by indebted Israeli holding
company Eurocom and has been searching for a buyer for its BCom
stake since mid-2018 under heavy pressure from bondholders.
    "The company's board continues to explore the possibility of
selling its BCom shares, continues with discussions with the
potential bidders, and continues to explore possibilities for
strengthening the company's capital structure," Internet Gold
said. "The company has sufficient reserves to service its debt
in 2019."
    It said the auction was impacted by recent declines in share
prices of both BCom  BCOM.O  and Bezeq amid a lower dividend
payout, the sale of Bezeq shares by foreign investors and a
credit rating downgrade of BCom.
    Bezeq has undergone a reorganisation in recent months
following a securities investigation into its management and
owners that forced out its former chairman and chief executive.
    Internet Gold in June said it was examining offers to sell
some or all of its 64.78 percent stake in BCom, a company with a
single asset -- a 26.34 percent controlling stake in
Bezeq. urn:newsml:reuters.com:*:nL8N1TJ02V
    Shares of Internet Gold were down 16 percent in morning
trading in Tel Aviv while BCom's shares were 13 percent lower.
    Bezeq's shares, which are 12 percent lower so far this year
after a 30 percent fall in 2018, were down 1.7 percent on
Wednesday.  

 (Reporting by Steven Scheer and Tova Cohen
Editing by Alexandra Hudson)
 ((steven.scheer@thomsonreuters.com; +972 2 632 2210; Reuters
Messaging: steven.scheer.thomsonreuters.com@reuters.net;
Twitter: @StevenMScheer))