The information room for investors in the Unlimited fiber-optic venture will probably be opened at the end of next month. The investors will be able to enter the website and obtain data about the company's situation and its future plans. The goal is to recruit a strategic investor, but financial investors are also included in the plans.
At the same time, the venture has begun its efforts with the Ministries of Communications and Finance and the Government Companies Authority to change the terms of its license. Among other things, Unlimited wants the exclusion of Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) and Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) from ownership in the venture to be canceled. Rothschild Global Financial Advisory is leading this process.
Unlimited is staying under the radar at present, while continuing its deployment in various cities in Israel. It is clear to everyone, however, that without a change in the composition of its shareholders and the entry of a new controlling shareholder, the venture will have trouble getting up a head of steam.
The shareholders are in effect trying to turn the venture into a new company with a completely different composition and format. No preliminary conditions are being imposed on investors, nor are terms for their entry being stipulated. Negotiations will be held with those showing interest in making an investment, who will be consulted about what should be done to rebuild the venture.
The company's plans indicate that the venture needs hundreds of millions of shekels or even more for the purpose of speeding up its deployment to cover most customers in Israel. 30,000 households are covered at present, but the company has only 3,000 customers, because no effective marketing has been conducted so far.
There are questions about whether some of the shareholders in the venture will remain after an investor is brought in. It cannot be ruled out that one of the shareholders will remain, although only rumors are involved at present. Until matters become clearer following negotiations with a selected investor, there is no way of knowing what investors will and will not wish to remain in enterprise.
Published by Globes [online], Israel business news - www.globes-online.com - on April 27, 2016
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