HOT Telecommunication Systems Ltd. (TASE: HOT) today notified the Tel Aviv Stock Exchange (TASE) that it intends to begin merger negotiations with mobile carrier Mirs Communications Ltd. This would be a parties at interest deal, as Patrick Drahi controls HOT and owns Mirs.
Drahi has said in the past that he intended to merge Mirs and HOT when he buys out his partners in HOT - Fishman Holdings and Yediot Communications Ltd. Fishman has already sold its HOT stake to Drahi, and the sale of Yediot Communications' shares is due to close in June.
Formally, Drahi can therefore announce merger procedures as he has been expected to do since his acquisition of Mirs. Although a merger will result in HOT owning Mirs, the latter will likely continue to operate independently for the foreseeable future, and it will not be physically absorbed by HOT.
Eliezer Fishman is the controlling shareholder in “Globes”.
HOT's share price was unchanged NIS 60.01, giving a market cap of NIS 4.66 billion, when the TASE suspended trading in the share because of today's announcement.
Published by Globes [online], Israel business news - www.globes-online.com - on May 4, 2011
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