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

Pelephone, led by CEO Ilan Sigal, announced on Tuesday that it has signed a non-binding memorandum of understanding to acquire Wecom for 265 million shekels. The agreement marks a step toward expanding Pelephone's presence in the Israeli cellular market but is not yet final. Completion of the deal depends on due diligence, signing a binding agreement, and obtaining regulatory approvals from the Ministry of Communications and the Antitrust Authority.

The memorandum grants Pelephone a 60-day exclusivity period to conduct due diligence and negotiate with Wecom, with a possible 30-day extension if needed. Both companies will work to finalize commercial and legal terms during this time. Pelephone expects the acquisition, if completed, to positively impact Bezeq Group's EBITDA by approximately 50 million shekels in the short term and 100 million shekels in the long term through operational synergies.

Pelephone currently serves about 2.7 million subscribers, with over 1.6 million connected to its independent 5G network, the first of its kind in Israel. Wecom serves over 300,000 customers and holds roughly a 3% market share. Ilan Sigal emphasized that the deal reflects Pelephone's commitment to strategic growth and value creation. He also highlighted the importance of continued investment in 5G infrastructure as a national asset vital for competition, innovation, and economic growth in Israel.