Cellcom announced
that Discount Investment Corporation (DIC), the company’s controlling
shareholder, is considering selling up to 5 percent of the company’s share
capital.

 

DIC has entered into an agreement with a financial institution to sell 3,260,870
shares of Company stock, constituting approximately 3.3 percent of the
company’s issued share capital, for a total consideration of NIS 300 million in
cash.

 

The agreement also contains an option, exercisable by the
purchaser today, for the sale of an additional 1,700,000 shares, constituting
approximately 1.7 percent of the company’s issued share capital, for total
additional consideration of approximately NIS 156 million in cash.

 

The agreement also provides that in case these shares or
part thereof will be sold by the purchaser at a price per share exceeding NIS
92.5 within 72 hours from signing the agreement, the purchaser shall pay DIC an
additional consideration equal to 80 percent of the part of the consideration
exceeding such price per share for the shares that will be sold in such price.

 

The purchaser has informed DIC of its intention to place
such shares for sale outside the United States to non-US investors. The
agreement further provides that DIC will not dispose of any of the Company’s
shares owned by it following this sale until August 15, 2011, unless DIC
obtains the consent of the said financial institution purchaser.

 

The sale is scheduled to be completed today. Following
the completion of the transaction, DIC will hold approximately 45 percent of
the Company’s issued share capital (approximately 48.4 percent of the Company’s
voting rights), or if the option is exercised, approximately 43.3 percent of
the Company’s issued share capital (approximately 46.7percent of the Company’s
voting rights).

 

By Telecomlead.com Team
[email protected]