Internet Gold negotiating sale of controlling stake in Bezeq

B Communications

17/06/2018 08:24

JERUSALEM, June 17 (Reuters) - Internet Gold-Golden Lines
 IGLD.TA  said on Sunday it was in advanced talks to divest most
of its shares in B Communications  BCOM.TA , through which it
controls Israel's largest telecoms group, Bezeq  BEZQ.TA , for
as much as 746 million shekels  ($206 million).
    Internet Gold last week announced 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:*:nL8N1TC0E6
    Internet Gold said in a statement to the Tel Aviv Stock
Exchange there has been "significant progress" in negotiations
with a private local buyer, the Neuman Group, over the past four
days.
    Under the proposed deal, the Neuman Group would buy in
stages between 36 to 52 percent of Bcom's 29.9 million
outstanding shares at a price of 46 to 48 shekels
($12.70-$13.25) -- a premium to its current share price. In
total, the price paid would come to about 497 to 746 million
shekels.
    Internet Gold is controlled by indebted Israeli holding
company Eurocom. Any deal would require regulatory approval.
    Bcom shares were up 5 percent at 36.56 shekels in morning
trade in Tel Aviv. Shares of Internet Gold were up 3.5 percent.
($1 = 3.6226 shekels)

 (Reporting by Ari Rabinovitch; Editing by Steven Scheer)
 ((ari.rabinovitch@thomsonreuters.com;  +972-2-632-2202; Reuters
Messaging: ari.rabinovitch@thomsonreuters.com@reuters.net))