NetVision parent company Discount Investment is expected to seek a larger stake in the firm.
Discount Investment Corporation (TASE: DISI) subsidiary NetVision Ltd. (TASE: ) will acquire the shares of Bank Leumi (TASE: LUMI) in Hot Cable Systems Media Ltd. (TASE: HOT). The parties agreed the deal after brief talks. Bank Leumi is due to approve the sale after the Passover holiday. NetVision will reportedly pay NIS 500 million for 15% of HOT, slightly less than the company value since the acquisition will not give NetVision a controlling stake.
The negotiations began in earnest this week, following a series of low-key talks in recent weeks. Bank Leumi decided to accept the offer in light of Discount Investment's determination and the fact that it was willing to close deal without excess prevarication or unnecessary examinations, rather than continue to talk to other potential buyers. With the first hurdle now complete, Discount Investment will probably continue to try buy out other HOT other shareholders. The latest acquisition was transacted through NetVision for internal reasons, and Discount Investment will ensure that NetVision is not required to finance the acquisition out of its own resources.
Discount Investment is a subsidiary of IDB Holding Corp. Ltd. (TASE:IDBH), controlled by chairman and CEO Nochi Dankner.
Published by Globes [online], Israel business news - www.globes-online.com - on April 17, 2008
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