Former Pelephone Communications Ltd. CEO Gil Sharon and Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) chairman Shlomo Rodav has formed a plan for the sale of the subscribers of Israeli mobile operator Golan Telecom Ltd. to its rivals, sources inform "Globes." The two executives have met with regulators including the Israel Antitrust Authority and presented their model. RELATED ARTICLES Abramovich Israel visit fuels Golan acquisition talk Golan Telecom loses more ground Golan Telecom really wants regulatory concessions Under the terms of the plan, Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL), which is owed NIS 600 million by Golan Telecom, would receive 450,000 customers in exchange for the debt. The remaining subscribers would be divided up between the other companies and sold to them with Hezi Bezalel's Xfone ensured 125,000 customers that it can buy. This would bring Bezalel straight into the market in order to promote competition instead of Golan. The final price per subscriber has yet to be set. The plan is dependent on an agreement between Cellcom and Golan Telecom. At present Golan is appealing the Antitrust Authority's decision to void Cellcom's acquisition of it. The rationale is that Golan has reached a dead end and has no future in the market. If bought by another buyer, the new owner would have to pay the debt to Cellcom and so any purchase price would be far lower than the amount Cellcom has agreed to pay. Golan is also asking the regulator to change the terms of its license so that it can become a Mobile Virtual Network Operator (MVNO) and does not have to invest in its own network. Sharon and Rodav declined to comment on this report. Published by Globes [online], Israel business news - www.globes-online.com - on June 6, 2016 © Copyright of Globes Publisher Itonut (1983) Ltd. 2016
