Electra seals $91m Golan Telecom acquisition
03 January 2017 | Jason McGee-Abe
Electra Consumer Products has agreed to acquire mobile phone operator Golan Telecom for NIS 350 million ($91 million).
Israel’s Electra has also signed a 10-year 3G and 4G network sharing agreement with Cellcom Israel, which will continue to host Golan Telecom on its network. Cellcom, which is set to lend Electra NIS 130 million to help finance the deal, will receive at least NIS 210 million a year for ownership of 50% of the two companies' joint network.
"Cellcom congratulates Electra Consumer Products on the acquisition of Golan Telecom and its entry into the telecommunications industry,” said Cellcom’s CEO Nir Sztern.
“The joint network agreement enables Cellcom to continue to lead the Israeli mobile telephony market and to continue investing in the technologies of the future."
The parties will cooperate in the development of a shared network and future technologies, which will use both parties’ 3G and 4G frequencies. It will be operated by a separate, newly created entity that will be equally owned by the parties. Cellcom Israel is also set to provide Golan Telecom with 2G hosting services.
Cellcom’s efforts to takeover Golan were blocked as a result of regulatory opposition to the proposed agreement and in November the operator had filed a request in a Tel Aviv court for the liquidation of Golan, alleging that Golan owes it NIS 600 million for using its network.
Electra’s deal is subject to regulatory approval but Cellcom’s NIS 130 million poses a challenge to the Israel Antitrust Authority.
10h | Jason McGee-Abe
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