Hutchison Telecom Reported in Talks to Sell Israeli Mobile Network

Israeli businessman Ilan Ben-Dov is reported to be interested in forming a group of investors to acquire Partner Communications, a mobile network operator that trades under the Orange brandname. The local Globes newspaper reported that Ben-Dov recently met with former Partner CEO Amikam Cohen, who is representing the cellular operator's controlling shareholder Hutchison Telecommunications International.

Sources close to Ben-Dov confirm that he is interested in the acquisition. The newspaper warned though that other sources close to Ben-Dov feel that the deal is unlikely to go ahead because the risks are too high for him.

Last month, the mobile network reported that its first quarter revenues dropped by nearly 11% to reach NIS 1.4 billion (US$337 million), although the net income was steady at NIS 296 million (US$71 million). The subscriber base gained 5,000 net new customers to reach 2.903 million, including 1.021 million 3G subscribers. Total market share at the end of the quarter is estimated to be approximately 31.4% (unchanged from Q4 2008).

Ben-Dov owns Suny Electronics, which imports and distributes the mobile phone handsets of Samsung. Also competing to buy Partner are Eurocom Group and First Israel Mezzanine Investors Fund (FIMI).

On the web: Globes

Posted to the site on 24th June 2009