Israel 10 chairman Joseph (Yossi) Maiman and Mexican-Jewish businessman Moses Saba have signed an MOU, under which Saba will invest $20 million in Channel 10, partly for a stake in the channel, and partly to cover Israel 10’s debts. The agreement was a personal one between Maiman and Saba, although Saba may choose the company through which he will make the investment.
Saba is one of Mexico’s leading businessmen. He owns a number of companies in textiles, pharmaceuticals, and communications, including TV Azteca (Nasdaq: TVAZF). “Forbes” magazine estimated Saba’s personal worth at $1 billion. Saba has never invested in Israel before, although he has made charitable donations.
Under the agreement, Saba will become a strategic investor in the channel, up to a 49% holding. The size of his holding will be determined by the size of his investment. His investment will substantially dilute the holdings of the current investors, some of whom may be forced out.
Agreement on Saba’s investment, which depends on achieving several targets, is to be completed by the end of July, and depends on debt arrangement with Israel 10’s creditors, headed by Bank Leumi (TASE:LUMI). Such an arrangement requires approval from the court, as part of a recovery plan for the channel; the Second Broadcasting Authority; and the implementation of the new regulations outlined by the Yitzhaki committee. The ministerial legislative committee is due to meet next Monday to discuss the recommendations.
The agreement allows for other investors in Israel 10, including a Channel 2 franchise holder, although no advanced negotiations are currently taking place with any other investor.
Published by Globes [online] - www.globes.co.il - on June 10, 2003