Israel’s Eurocom gets arrangement proposal from Cellcom shareholder

By Caroline Salls

Pittsburgh, Feb. 5 – Eurocom Communications Ltd. received a binding creditors arrangement from Cellcom Israel Ltd. indirect controlling shareholder Discount Investment Corp. Ltd. (DIC) that includes the purchase of some holdings of the Eurocom group in some of its subsidiaries and an investment in Eurocom, according to a Cellcom Israel news release.

Cellcom Israel said the proposal is subject to the receipt of Eurocom’s creditors’ approval and court approval for the proposal by March 4 and March 14, respectively.

The proposal related to the investment in Eurocom is also subject to the receipt of all regulatory approvals, including the Ministry of Communications and Ministry of the Prime Minister of Israel’s approvals that execution of the proposal will not impair the licenses and authorizations required in connection with Eurocom’s control of Bezeq, the Israeli Communications Co. Ltd., as well as the Antitrust Commissioner’s approval to execute the investment in Eurocom without burdening conditions, save for the demand to complete the sale of DIC’s holdings in Cellcom.

If the commissioner’s approval is conditioned by the sale of DIC’s holdings in Cellcom, the fulfillment of the sale will be another precondition for the investment in Eurocom.

According to the release, DIC clarified that the commissioner informed it that the completion of sale of DIC’s holdings in Cellcom will be required before execution of the creditors arrangement.

Eurocom is a Ramat Gan, Israel-based telecommunications company.

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