Saban to return controlling stake in Israel's Partner Comms - media

Hutchison Telecommunications Hong Kong Holdings

22/09/2019 11:56

JERUSALEM, Sept 22 (Reuters) - U.S.-Israeli media magnate
Haim Saban plans to give up his controlling stake in Israeli
mobile phone operator Partner Communications  PTNR.TA ,
financial media reported on Sunday.
    A spokesman for Saban declined to comment.
    Saban bought his 30% stake in Partner, Israel's
second-largest mobile operator, from Scailex in 2013 mostly in
the form of a $300 million loan from Hong Kong conglomerate
Hutchison Whampoa  0215.HK .
    The Globes newspaper said repayment is due in January 2020
and since there is no economic reason to repay the loan, Saban
prefers to return the shares. Saban's holdings have slid in
value to 753 million shekels ($214 million).
    The Calcalist daily said Saban had lost $175 million on his
investment in Partner and would return the shares by the end of
the year. It noted that Saban had used his holdings in Partner,
whose market value stands at 2.5 billion shekels, as collateral
for the loan.
    Hutchison founded Partner in the late 1990s and sold its
stake to Scailex in 2009 before Scailex sold it to Saban.
    Like its peers, Partner's  PTNR.O  revenue and profit have
plunged in the wake of a 2012 reform that opened the mobile
market to new players, sharply reducing prices. It is seeking
new revenue streams and pushing to become an integrated
multi-service telecoms group.
($1 = 3.5201 shekels)

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