Canadian investment firm Brookfield Asset Management is emerging as one of the parties interested in acquiring telecommunications company Cellcom. The firm has expressed readiness to enter into negotiations with Cellcom’s controlling shareholder Discount Investment, which is controlled by Michael and Daniel Salkind’s Elco.. Brookfield manages investments all over the world and recently decided to enter Israel. The firm is advised by HSBC.
RELATED ARTICLES
Doron Cohen quits Discount Investment, to bid for Cellcom
Sky fund among possible Cellcom buyers
Barclays has begun the process of finding an investor to buy Cellcom, and in that context Brookfield expressed interest. Barclays was readying for the stage of presentations to investors and opening information rooms, but meanwhile the approach was received from Brookfield and it was decided to give a chance to negotiations with them.
Because of Brookfield’s widespread investments, buying the controlling interest in Cellcom could be complicated for it, since it will require approval from the Ministry of Communications and the Ministry of Defense. In the past, the acquisition of a mobile telephony company by a company with investments in Arab countries has met with opposition from the defense establishment.
A few months ago, Brookfield tried to do a deal with Cellcom for the purchase and lease-back of its cellular sites. This was part of an attempt by Discount Investment to find a solution to the problem of its debt to its bondholders. The deal broke down because of objections by the workers committee.
It seems that since then Brookfield has continued to seek investments in Israel, and the fact that Cellcom was put up for sale creates an opportunity for it to buy the company and then finance the purchase through a leasing deal on the sites.
Discount Investment recently sold 9.9% of Cellcom for NIS 313 million, reducing its holding in the company in order to make the process of selling control easier.
Published by Globes, Israel business news – en.globes.co.il – on August 23, 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
