The partnership between Israeli investors and Telecom Italia )NYSE: TI) in MedNautilus is facing dissolution. The shareholders have reached an agreement giving Telecom Italia full ownership of MedNautilus, including control of the company’s undersea cables in the Mediterranean basin. The Israeli shareholders will obtain ownership of Med-1, which owns cable telecommunications infrastructure in Israel.
The Med group is a private company controlled by Telecom Italia with a 51% stake. Clal Industries and Investments (TASE: CII) subsidiary Clalcom 15%, Fishman group subsidiary Globescom 15%, Kama Communications (controlled by the Livnat family) 10%, and Aurec 9% own the other shares.
Last Friday, MedNautilus president and CEO Amos Lasker, who has managed the company in the eight years since it was founded, announced his resignation, which is part of the dissolution of the partnership. Lasker was identified with the Israeli shareholders. MedNautilus chairman Francesco Nanotti will replace him.
The Med group’s 2003 revenue from communications services in Israel totaled NIS 100 million, and are expected to reach over NIS 150 million. Med also had NIS 50 million in revenue from hosting services for backing up and storing information from large enterprises.
Published by Globes [online] - www.globes.co.il - on April 18, 2004