The pressure on Ilan Ben Dov has had its effect. Scailex Corporation (TASE: SCIX; Pink Sheets:SCIXF), through which he controls Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) with a 44.5% stake, today announced that its board of directors has decided to sell a block of shares in the Orange franchisee to a strategic partner. Scailex will keep the controlling core. The sale will be made at a substantially higher price than Partner's current market cap of NIS 5.2 billion.
The sale of part of Partner's controlling core is intended to strengthen Scailex's capital structure, as it is unclear how the company will be able to repay its debts, and also pay a dividend to its parent company, Suny Electronics Ltd. (TASE: SUNY), in view of the recent drop in its profitability. The planned sale comes after Scailex unsuccessfully tried to sell part of its Samsung mobile phone import and distribution business.
Scailex's debt totaled NIS 3.1 billion at the end of September, and its bond yields have reached 28%. Suny's three bond series, which total NIS 240 million, have similar yields.
Partner's share price fell 1.4% on the TASE today to NIS 32.92, after remaining unchanged on Nasdaq on Friday at $8.63, giving a market cap of $1.34 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on December 25, 2011
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