Discount Investment renews efforts to sell Cellcom

Discount Investment Corporation Ltd. (TASE:DISI) is renewing its attempts to sell the controlling core in Israeli telecom company Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) in order to improve its financial strength, sources familiar with the matter have told “Globes.”

The two investment funds that expressed interest in buying the stake several months ago – Canada’s Brookfield Asset Management and Apax partners led by Zehavit Cohen – are as far as is known still interested in a deal.

Alternatively Discount Investment, which is controlled by Michael and Daniel Salkind’s Elco, is considering bringing a partner into Cellcom’s controlling core. Barclays is supporting Discount Investment’s efforts to sell Cellcom shares.

Discount Investment currently has a 35.7% stake in Cellcom worth NIS 973 million, after selling a 9.9% stake last summer for NIS 311 million. Cellcom has a market cap of NIS 2.7 billion after its share price fell 6.5% over the past year. Cellcom owns Golan Telecom, which it acquired for NIS 613 million in 2020, owns the Dynamica store chain and has a stake in fiber optic venture IBC. Other major shareholders in Cellcom, include major Israeli institutional investors including Migdal, Phoenix, Harel and Menorah Mivtachim.

Published by Globes, Israel business news – en.globes.co.il – on January 23, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.