The concentration of telecom operators continues in Israel. It is ultimately Cellcom, Israel’s largest mobile operator, which announced have got their hands on the fourth operator Golan Telecom, in which Xavier Niel holds 30% of shares. The transaction, which confirms a 100% stake in Cellcom, reaches 1.17 billion shekels (approximately 277 million euros).
On sale for a month, Golan was courted by many competing operators (Bezeq, Pelephone), and Hot Mobile, owned by Patrick Drahi and the Altice group. A few days earlier, the Israeli press even relayed that an agreement had been reached between Hot Mobile and Golan, for an amount of 124 million dollars. It is ultimately more than double that Cellcom will have spent to pay for Golan, “the Israeli Free”. It has a base of 900,000 customers and claims a low churn. Its expected turnover for 2015 is 118 million euros.
With this acquisition, Golan Telecom intends to benefit from the experience of the leader Cellcom on “full service, improvement of service offers, mobile, landline, Internet, and TV offers” and this, “despite tough competition. Which is played in Israel. For its part, Cellecom is pleased to be able to add “a low cost brand” to its portfolio. It also specifies that this acquisition will be financed by the purchase of shares and debt.
The Israeli Competition Authority must agree to this operation.
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