Quantcast

Internet Gold – Golden Lines Ltd. Announces That its 75.3% Owned Subsidiary, 012 Smile.Communications Ltd., Will Sell its Current Telecom Business to Ampal for NIS 1.2 Billion

November 16, 2009

PETACH TIKVA, Israel, November 16 /PRNewswire-FirstCall/ — Internet Gold
- Golden Lines Ltd. (NASDAQ Global Market and TASE: IGLD), a leading Israeli
communications group, today announced that its 75.3% owned subsidiary, 012
Smile.Communications Ltd. has signed an agreement with a wholly owned
subsidiary of Ampal-American Israel Corporation (Nasdaq: AMPL) to sell it 012
Smile’s current telecom business for NIS 1.2 billion, or approximately $318
million
. The transaction is subject to customary closing conditions,
including the receipt of regulatory approvals from the Israel Ministry of
Communications and the Israel Antitrust Commissioner.

Commenting on the transaction, Ms. Stella Handler, CEO of 012
Smile.Communications, said, “We are very pleased to enter into this agreement
with Ampal to sell 012 Smile.Communications’ business. This transaction
represents an important step in finalizing our recently announced agreement
to acquire the controlling stake in Bezeq The Israel Telecommunication Corp.,
Israel’s largest telecommunications provider (TASE: BZEQ).”

Mr. Shaul Elovitch, Chairman of 012 Smile.Communications and Internet
Gold – Golden Lines Ltd., added, “During the past several years we have
worked diligently to build 012 Smile.Communications’ operations, with the
result that 012 Smile has become one of Israel’s leading telecommunications
providers and brands. We congratulate Ampal on its decision to acquire the
business of 012 Smile.Communications and on the successful conclusion of our
agreement.”

J.P. Morgan plc acted as exclusive financial adviser and Fischer Behar
Chen Well Orion & Co. as legal adviser to 012 Smile.Communications in
connection with the transaction.

About Internet Gold – Golden Lines Ltd.

Internet Gold – Golden Lines Ltd. is one of Israel’s leading
communications groups with a major presence across all Internet-related
sectors. Its subsidiary, 012 Smile.Communications Ltd., is one of Israel’s
major Internet and international telephony service providers, and one of the
largest providers of enterprise/IT integration services. Its 100% owned
subsidiary, Smile.Media Ltd., manages a portfolio of Internet portals and
e-Commerce sites.

About 012 Smile.Communications

012 Smile.Communications is a leading provider of communication services
in Israel, offering a wide range of broadband and traditional voice services.
The Company’s broadband services include broadband Internet access with a
suite of value-added services, specialized data services and server hosting,
as well as new innovative services such as local telephony via voice over
broadband and a WiFi network of hotspots across Israel. Traditional voice
services include outgoing and incoming international telephony, hubbing,
roaming and signaling and calling card services. 012 Smile.Communications
services residential and business customers, as well as Israeli cellular
operators and international communication services providers through its
integrated multipurpose network, which allows the Company to provide services
to almost all of the homes and businesses in Israel. 012 Smile is a majority
owned subsidiary of Internet Gold Golden Lines Ltd. (NASDAQ: IGLD) one of
Israel’s leading communications groups with a major presence across all
Internet related sectors. Internet Gold and 012 Smile are part of the Eurocom
Communications Group.

For additional information about 012 Smile.Communications Ltd., please
visit the Company’s investors’ site at http://www.012.net.

Forward-Looking Statements

This press release contains forward-looking statements that are subject
to risks and uncertainties. Factors that could cause actual results to differ
materially from these forward-looking statements include, but are not limited
to, general business conditions in the industry, changes in the regulatory
and legal compliance environments, the failure to manage growth and other
risks detailed from time to time in 012 Smile.Communications’ and Internet
Gold – Golden Lines’ filings with the Securities Exchange Commission. These
documents contain and identify other important factors that could cause
actual results to differ materially from those contained in our projections
or forward-looking statements. Stockholders and other readers are cautioned
not to place undue reliance on these forward-looking statements, which speak
only as of the date on which they are made. We undertake no obligation to
update publicly or revise any forward-looking statement.

For further information, please contact:

Ms. Idit Azulay, Internet Gold

idita@co.smile.net.il / Tel: +972-72- 200-384

SOURCE Internet Gold – Golden Lines Ltd


Source: newswire



comments powered by Disqus