Cellcom
Photo: Matti Elmaliach
Cellcom, Partner to drop out of Tel Aviv blue-chip index
Squeezed by six new mobile phone operators, Cellcom and Orange to leave Tel Aviv Stock Exchange TA-25 after 70% drop in past five years.
Israel's two largest mobile phone operators, Cellcom (CEL.TA) and Partner Communications (PTNR.TA), will drop out of the Tel Aviv Stock Exchange's (TASE) blue-chip TA-25 .TA25 index as of Dec. 15.
They will be replaced by flavorings and specialty ingredients company Frutarom (FRUT.TA) and real estate firm Melisron (MLSR.TA), the TASE said on Wednesday.
The TASE updates its indexes twice a year.
Cellcom (CEL.N) and Partner (PTNR.O), which operates under the Orange brand name, have been squeezed by the addition of six new mobile phone operators in Israel that has led to a steep drop in revenue and profits. The two companies' shares have fallen, hitting their market capitalization.
Shares in both Cellcom and Partner are down about 26 percent so far in 2014 and have shed some 70 percent the past five years. Their market capitalizations are both about 3.6 billion shekels, according to Thomson Reuters data.
They will now join the mid-cap TA-75 .TA75 index.
Frutarom's market value is about 6.1 billion shekels ($1.55 billion), while Melisron's market capitalization is around 4.4 billion shekels, according to Thomson Reuters data.
Cellcom and Partner, which also own divisions that provide internet and long-distance calling services, have said they plan to offer TV services to help bring in more revenue.
