Israeli mobile operator Cellcom said it has approached Netvision with a merger proposal. The company previously announced that it was at the preliminary stages of examining a business combination with Netvision, an Israeli international landline operator providing internet services and domestic and international voice services. Netvision is controlled by the IDB group. Recently, a regulatory change was made allowing a mobile operator to hold an ILD operator, prompting Cellcom to approach Netvision. The proposed merger would see Cellcom acquire all of Netvision's outstanding share capital for a cash consideration, based on its share capital's estimated value of ILS 1.5 billion, and Netvision becoming a wholly owned subsidiary of the company. The merger proposal is subject to, among other things, negotiating and finalizing terms of definitive agreements, further due diligence by the company, independent valuation and receipt of fairness opinions in respect of the consideration to be offered, and approval by both companies' audit committees and boards of directors. If a definitive agreement is reached, closing would be subject to approval of the shareholders of both companies.
