Israel Electric Corporation Sells Stake in Fiber Optic Venture

Israel Electric Corporation (IEC) has signed a non-binding memorandum of understanding to sell its entire 30% stake in the fiber optic company IBC, operating under the brand name 'Unlimited', to the current controlling shareholder group. The deal, structured as 'as-is', is expected to yield approximately 250 million shekels for IEC's shares. Additionally, IEC will receive repayment for its outstanding loan to IBC, estimated at 115 million shekels as of June, bringing the total value of the transaction to about 365 million shekels.

IBC was established in 2013 by IEC and other investors to leverage the electric grid for high-speed internet infrastructure. In October 2025, a consortium including The Phoenix, Mor Investment House, and Noy Fund acquired a 70% controlling stake in IBC for an estimated 2.1 billion shekels, including shareholder loans. Despite exiting its controlling share, IEC will continue to serve as IBC's primary contractor for fiber optic network deployment using the electricity infrastructure.

The agreement initiates a 90-day exclusivity period for negotiations on a final deal. The transaction's completion is contingent upon approval from the Ministry of Communications and consent from IBC's financing entities. IEC Chairman Doron Arbeli stated that the company is managing its assets responsibly and views the investment in IBC as a success, but is seizing an opportunity to realize value under favorable terms. IEC will maintain its focus on reliable electricity supply while seeking new investment opportunities within its core areas.