Hutchison to get stake in Israeli phone industry
Source: Bloomberg News |
June 6, 2012, Wednesday
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Print Edition
Print Edition
HUTCHISON Whampoa Ltd, billionaire Li Ka-shing's biggest company, is re-entering Israel's phone industry after less than three years by agreeing to buy a stake in Partner Communications Co's largest shareholder.
Hutchison and the Li Ka-Shing Foundation will pay US$125 million for 75 percent of Scailex Corp from Suny Electronic Ltd, the Hong Kong-based company said yesterday. Scailex owns a 44.5 percent stake in Partner, Israel's second-largest mobile- phone operator. Scailex jumped as much as 80 percent and was up 25 percent at 9 shekels at 2:20pm in Tel Aviv.
Hutchison exited the Israeli phone market in 2009 when its telecommunications unit sold a 51 percent stake in Partner to Scailex for US$1.4 billion. Partner's shares have slumped 66 percent in the past year as the government stepped up efforts to boost competition in the mobile phone market.
"This is not a cheap buy," Dan Eldar, a representative of Hutchison based in Israel, said from Hong Kong. "Partner is a good company" and it's premature to talk about business strategies for the telecom company, he said.
Suny will retain a 3.6 percent stake in Scailex and Ilan Ben Dov, who controls Suny, will own 3.7 percent.
Suny will acquire the import and marketing operations of Samsung cellular products from Scailex for US$100 million, Suny said. A loan agreement signed in August 2009 would also be restructured, the company said.
Hutchison plans to appoint Amikam Cohen, former chief executive officer at Partner, as chairman of Partner's board if the deal goes through.
Li controls more than 50 percent of Hutchison Whampoa's stock, through his Cheung Kong Holdings Ltd, and personal stock holdings. Hutchison has investments in industries spanning ports, retail, telecommunications, energy and property in more than 50 countries.
Hutchison is assuming Scailex's debt, Eldar said. Of Scailex's total debt of US$760 million, US$300 million is owed to Hutchison and the remainder to third parties, according to Hutchison.
Hutchison Telecommunications International Ltd, a unit of Hutchison Whampoa, booked a one-time gain of HK$6.33 billion (US$816 million) when it sold its stake in Partner, according to a March 2010 filing in Hong Kong.
Hutchison and the Li Ka-Shing Foundation will pay US$125 million for 75 percent of Scailex Corp from Suny Electronic Ltd, the Hong Kong-based company said yesterday. Scailex owns a 44.5 percent stake in Partner, Israel's second-largest mobile- phone operator. Scailex jumped as much as 80 percent and was up 25 percent at 9 shekels at 2:20pm in Tel Aviv.
Hutchison exited the Israeli phone market in 2009 when its telecommunications unit sold a 51 percent stake in Partner to Scailex for US$1.4 billion. Partner's shares have slumped 66 percent in the past year as the government stepped up efforts to boost competition in the mobile phone market.
"This is not a cheap buy," Dan Eldar, a representative of Hutchison based in Israel, said from Hong Kong. "Partner is a good company" and it's premature to talk about business strategies for the telecom company, he said.
Suny will retain a 3.6 percent stake in Scailex and Ilan Ben Dov, who controls Suny, will own 3.7 percent.
Suny will acquire the import and marketing operations of Samsung cellular products from Scailex for US$100 million, Suny said. A loan agreement signed in August 2009 would also be restructured, the company said.
Hutchison plans to appoint Amikam Cohen, former chief executive officer at Partner, as chairman of Partner's board if the deal goes through.
Li controls more than 50 percent of Hutchison Whampoa's stock, through his Cheung Kong Holdings Ltd, and personal stock holdings. Hutchison has investments in industries spanning ports, retail, telecommunications, energy and property in more than 50 countries.
Hutchison is assuming Scailex's debt, Eldar said. Of Scailex's total debt of US$760 million, US$300 million is owed to Hutchison and the remainder to third parties, according to Hutchison.
Hutchison Telecommunications International Ltd, a unit of Hutchison Whampoa, booked a one-time gain of HK$6.33 billion (US$816 million) when it sold its stake in Partner, according to a March 2010 filing in Hong Kong.
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