Partner Communications Gets Court Approval for NIS 500 Million Dividend
Translated & summarized from Calcalist by baba
Partner Communications received court approval to distribute a NIS 500 million dividend to shareholders. The court ruled the distribution would not jeopardize the company's financial obligations after objections were resolved. The company chose to redeem NIS 480 million in bonds rather than seek bondholder consent for the dividend. This is the second major dividend payout by Partner this year.
The story in 5 lines · by baba
- Partner Communications approved to distribute NIS 500 million dividend to shareholders.
- Judge Shelit Selesch approved the dividend, finding it would not harm company obligations.
- Objections from bondholders were removed after Partner redeemed NIS 480 million in bonds.
- The company's distributable profits were only NIS 75 million at the time of the request.
- This dividend follows a previous distribution of NIS 465 million this year.
Partner Communications has received court approval to distribute a dividend of NIS 500 million to its shareholders. Judge Shelit Selesch of the Central District Court in Lod approved the distribution after being convinced that it would not harm the company's ability to meet its obligations and that objections to the move had been removed. The distribution is not being made from Partner's distributable profits, which stood at only NIS 75 million when the request was filed in July. The company currently has NIS 158 million in cash. Bondholders of two series of Partner bonds, which the company was forced to redeem, had objected to the distribution. Partner initially redeemed Series H bonds for NIS 140 million and later decided to redeem Series G bonds for NIS 340 million. Including interest, the payment to Series G bondholders totaled NIS 344 million. The bondholders sought compensation in exchange for their consent to the distribution, but the company, led by Chairman Shlomo Rodav and CEO Avi Gabbay, refused and opted to redeem the bond series instead. This dividend follows another distribution of NIS 465 million made by Partner earlier this year.
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