Partner Telecom Gets Court Approval for NIS 500 Million Special Dividend
Translated & summarized from Globes by baba
Partner Communications received court approval to distribute a special NIS 500 million dividend after repaying bondholders who opposed it. The company will finance the distribution through a NIS 750 million debt raise. The largest shareholder, Amphissa Group, will receive about NIS 106 million. This follows Partner's resumption of dividend payments last year after a ten-year break.
The story in 5 lines · by baba
- Partner Communications received court approval for a NIS 500 million special dividend distribution.
- The company repaid two bond series that had opposed the dividend distribution.
- The dividend will be financed by a NIS 750 million debt raise.
- The largest shareholder, Amphissa Group, will receive approximately NIS 106 million.
- Partner resumed dividend payments last year after a decade-long hiatus.
The District Court has approved Partner Communications' plan to distribute a special dividend of NIS 500 million, following the company's early repayment of two bond series that had opposed the distribution. Judge Hilit Yesil authorized the dividend, stipulating it must be completed within four months.
Partner had sought court approval for the dividend, which is not from its retained earnings, intending to finance it through a NIS 750 million debt raise. Bondholders from two series did not achieve the required majority to approve the distribution. Partner proceeded to early redeem Series H bonds, and subsequently Series G bonds, totaling NIS 484 million in early redemptions. The company argued to the court that these bondholders were no longer creditors and that the distribution would not jeopardize its ability to meet existing and future obligations.
The Tax Authority did not object to the dividend, and the Israel Securities Authority stated it would not take a position. No other objections were raised by Partner's creditors.
The largest shareholder, the Amphissa Group, which holds 21.2% of Partner's shares, stands to benefit significantly. The group, comprising companies associated with Shlomo Rodov, Roni Gath, Mori Arkin, The Phoenix, and Partner CEO Avi Gabbay, will receive approximately NIS 106 million from the dividend. Amphissa acquired its controlling stake in April 2022 for NIS 960 million. The group is reportedly realizing a paper profit of around NIS 755 million on its investment before this dividend distribution, after Partner resumed dividend payments last year following a decade-long hiatus.
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