Internet Gold logo
Internet Gold to buy rest of Golden Lines
Israeli internet service provider to merge with competitor of leading telephone company
Israeli Internet service provider Internet Gold said on Sunday it has agreed to increase its stake in 012 Golden Lines to 100 percent from 60 percent for USD 56 million.
In July, Internet Gold agreed to buy 60 percent of long-distance phone operator Golden Lines for USD 84 million, putting it in a stronger position to compete with dominant phone company Bezeq Israel.
Internet Gold’s shares, which were suspended before the open pending the announcement, jumped 5.4 percent when trading in its Tel Aviv shares resumed.
The acquisition is subject to the approval of the Israeli Anti-Trust Commissioner and the Ministry of Communications.
Following receipt of the necessary approvals, Internet Gold expects to merge O12 Golden Lines with its communications subsidiary.
Stella Handler, chief executive officer of 012 Golden Lines, will serve as the CEO of the merged communications company.
'Revenues expected to increase significantly'
Shaul Elovitch, chairman of Internet Gold, will also be chairman of the merged company.
“The fact that Internet Gold will hold full ownership in both companies will simplify and make the merger process more effective,” said Eli Holtzman, CEO of Internet Gold, who will also serve as vice chairman of the merged company.
“We anticipate executing the merger plans in a quick and efficient manner so that our group benefits from the expected synergy both on the expense and revenue generation levels.”
He said that in 2007, Internet Gold’s revenues are expected to increase significantly to above 1 billion shekels and profitability is also expected to improve. Internet Gold is part of privately held Eurocom Communications Ltd.
Golden Lines, which was owned by local businessman Eliezer Fishman, and Internet Gold have recently become rivals as both offer long distance calling and Internet services. Golden Lines has also started offering a domestic calling service via cable.
