Israeli businessman Joseph Maiman has acquired Internet services provider (ISP) and international calls business of 012 Smile.Communications Ltd. (Nasdaq:SMLC; TASE: SMLC for NIS 1.2 billion.
Maiman, one of the owners of Channel 10, has bought the businesses from Shaul Elovitch, who is required to sell 012 Smile after his own recent acquisition of a controlling stake in Bezeq Israel Telecommunications Company Ltd. (TASE:BZEQ). The stock market shell of 012 Smile will remain in the hands of Elovitch, because it is through 012 Smile that he wants to acquire Bezeq.
Maiman is making the acquisition through Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL).
Maiman sees Smile's activities as a platform for building an international telecom company. He would not see the price he is paying as worthwhile for activities in the local market alone. He will leverage his contacts in Latin America and the former Soviet Union.
For his part Elovitch received similar bids for Smile from Hot Cable Systems Media Ltd. (TASE: HOT) shareholder Patrick Darhi and from Partner Communications Co. Ltd. (Nasdaq: PTNR; TASE:PTNR; LSE:PCCD) controlling shareholder Ilan Ben-Dov. However, Elovitch preferred Maiman's offer because it would not be delayed by close scrutiny from the Antitrust Authority.
Published by Globes [online], Israel business news - www.globes-online.com - on November 16, 2009
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