Israeli group Elco closing in on Golan deal - Mobile World Live

Israeli group Elco closing in on Golan deal

06 DEC 2016

Israeli industrial group Elco Holdings is reportedly set to acquire Golan Telecom, in a move that could allow the operator to resolve its long-running spat with rival Cellcom.

According to Globes Online, Elco is now in pole position to make the IL350 million ($92 million) acquisition, with Golan shareholder Patrick Pariente due to arrive in Israel to finalise the deal.

Golan is not discussing a sale with any other potential buyer, added the report.

The development comes just over a month after Elco withdrew from negotiations because of Golan’s demands and its refusal by the company to disclose full details about its position.

Notably, the company has been embroiled in a spat with the country’s market leader, Cellcom, which filed a liquidation request against it late last month.

Cellcom is demanding that Golan pay it IL600 million for national roaming services, as well as other sums. It has already started other legal proceedings.

The deal with Elco could however end the issue, as it apparently includes an agreement for the unification of networks with Cellcom, and the Israeli market leader will also be compensated for its outstanding debt.

The two companies agreed this week with a district court in Tel Aviv to accept mediation as they try to resolve their dispute.  The judge set the next hearing for 29 January.

Cellcom reportedly would prefer for Golan to be sold, but it has also prepared a plan of action in the event of liquidation.

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Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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