Pelephone Nears Wi-Connect Acquisition, Awaits Cellcom's Approval
Translated & summarized from TheMarker by baba
Pelephone is close to acquiring Wi-Connect for NIS 265 million, but the deal depends on Cellcom's agreement to release Wi-Connect from a network-sharing contract. Pelephone may have to pay Cellcom hundreds of millions of shekels to exit the existing agreement. The acquisition also requires complex regulatory approval, which is not guaranteed.
The story in 5 lines · by baba
- Pelephone is set to acquire Wi-Connect for NIS 265 million, pending regulatory and Cellcom approval.
- The deal requires Pelephone to potentially pay Cellcom hundreds of millions of shekels.
- Wi-Connect is currently controlled by Yariv Lerner and ClearMark Capital.
- Regulatory approval for the merger is a significant hurdle.
- Cellcom's agreement to release Wi-Connect from a network-sharing contract is essential.
Pelephone, part of the Bezeq group, is nearing a NIS 265 million deal to acquire the smaller cellular company Wi-Connect. Sources close to the transaction indicate that the parties have resolved all differences and are expected to sign soon. However, the deal's completion hinges on regulatory approval for the merger and, crucially, on whether Cellcom will allow Wi-Connect to exit its existing agreement for sharing Cellcom's antenna network, and at what price.
Pelephone will likely need to pay Cellcom hundreds of millions of shekels to release Wi-Connect from its contract. This financial commitment, coupled with the complex and uncertain regulatory approval process, presents significant hurdles to finalizing the acquisition.
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