Private equity fund SKY seems the most likely buyer of Shaul Elovitch's stake in satellite broadcasting company Yes. Three investment funds are interested in acquiring the stake - SKY Private Equity fund, NDS owner Permira, and Markstone Capital Partners Group LLC are all reportedly interested, though it seems unlikely that Markstone will carry out an investment as it currently deals with legal issues in the US.
Elovitch owns 32.6% of the satellite broadcaster, and he has to sell his stake because he is buying control of Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ). Bezeq owns 49.8% of Yes, so Elovitch's stake would brings Bezeq above a 50% holding, which is not allowed.
Sky Private Equity, managed by co-founders Zvi Yochman and Nir Dagan, is seeking telecommunications investments, and has recently displayed interest in Walla! as well.
Permira generally seeks control of companies in which it invests, so it is doubtful if it will invest in Yes without gaining a controlling stake, as Bezeq basically controls yes.
In contrast, an investment by Sky is both a renewed move into telecommunications, as well as a financial deal, since it will need to take on Yes's debt, estimated at NIS 500 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 16, 2009
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