Pelephone Signs Non-Binding Agreement to Acquire Wecom for 265 Million Shekels

Pelephone announced on Tuesday that it has signed a non-binding memorandum of understanding to acquire Wecom for 265 million shekels. The agreement includes a 60-day exclusivity period from the signing date, which can be extended by an additional 30 days, during which due diligence and negotiations will take place. Pelephone expects the acquisition to positively impact Bezeq Group's EBITDA through potential synergies estimated at around 50 million shekels in the short term and approximately 100 million shekels in the long term.

The deal is subject to regulatory approvals from the Ministry of Communications and the Antitrust Authority. Pelephone currently serves about 2.7 million subscribers, with over 1.6 million on 5G networks, while Wecom has more than 300,000 customers and holds roughly a 3% market share. Ilan Sigal, CEO of Pelephone, stated that the memorandum reflects the company's commitment to exploring strategic moves that support long-term growth and value creation, describing Wecom as a quality company with impressive operations and significant potential if the deal proceeds.