Matav negotiating possible increase in holdings in merged cable company
Dankner Investments, the controlling shareholder of Matav Cable Systems Media, Israeli provider of broadband cable TV services, announced that the possibility that Matav will increase its proportionate holding in the merged company that is to be created by Israel’s three cable television providers is being considered.
The announcement was released as a clarification in light of media reports of the possibility that Matav will increase its holdings in the merged cable company, in the context of the negotiations among the cable companies and the banks in respect of said merger.
Pursuant to the final draft merger agreement concluded among the cable companies in February 2003, Matav is expected to hold approximately 26 percent of the outstanding share capital of the merged cable company, if and to the extent that the merger is approved and consummated.
It is currently being considered whether Matav could increase its proportionate holding in the merged company by way of acquisition from the trustee of the Tevel group, a portion of the Tevel group's shares in the merged company. The size and other terms of any such acquisition have not yet been agreed upon by all the relevant parties and will be subject to various approvals and the consummation of the merger among the cable companies.
The Tevel group includes Tevel-Israel International Communications Ltd., Gvanim Cable Television Ltd. and Gvanim Krayot Cable Television (1989) Ltd., all of which are currently operating under a stay of proceedings pursuant to an Israeli court order (which is generally
similar to a chapter 11 reorganization process in the United States).
Matav is one of Israel's three cable television providers, serving roughly 25 percent of the population. Matav's investments include 7.5 percent of Partner Communications Ltd., a GSM mobile phone company, and 10 percent of Barak I.T.C. (1995), one of the three international telephony-service providers in Israel. — (menareport.com)
© 2003 Mena Report (www.menareport.com)