UBS AG (NYSE; SWX: UBS) today distributed 120 million Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) shares, amounting to 4.52% of the company, at NIS 8.14 per share, a discount on yesterday's closing price of NIS 8.35. The total gross proceeds were NIS 976.8 million.
The sale comes two months after the receiver on behalf of the banks for Gad Zeevi's shares in the company released a bloc of shares.
Bezeq's share fell 1.6% in early trading today to NIS 8.22, giving a market cap of NIS 22.16 billion.
In early August, receiver Adv. Alex Hartman released 155 million Bezeq shares once owned by Zeevi. Hartman was responsible for 17% of Bezeq at the time; the sale reduced the holding to 11.47%. The current sale will reduce the holding to 6%.
There is considerable interest in Bezeq in the capital market, mostly from foreign investors, since Israeli investors have already filled up on Bezeq shares in previous sales. Last month, Bezeq controlling shareholder Ap-Sab-Ar Holdings Ltd. (the Apax Partners-Saban Capital Group Inc.-Arkin consortium) sold 96 million shares for NIS 740 million.
Bezeq's share price has risen about 60% in the past year.
Published by Globes [online], Israel business news - www.globes-online.com - on October 19, 2009
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