Internet Gold offering underway

Doron Turgeman  photo: Shlomi Yosef

The offering of shares and warrants is being made in parallel to negotiations on the sale of control in Bezeq.

At the same time as it conducts negotiations on the sale of its stake in B Communications Ltd. (Nasdaq:BCOM; TASE: BCOM), the company that directly controls Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ), to overseas investors, Internet Gold Golden Lines Ltd. (Nasdaq: IGLD; TASE:IGLD) embarked on a capital raising round today, led by Apex Issuances.

Internet Gold, headed by CEO Doron Turgeman, is taking advantage of the rise in its share price yesterday, and will attempt to raise NIS 100 million in shares and warrants. The creditor banks that hold Eurocom (which controls Internet Gold) are expected to participate in the offering to the tune of NIS 55 million.

The minimum price in the offering was set at NIS 7, 30% below Internet Gold's opening price on the Tel Aviv Stock Exchange this morning of just over NIS 10. The company will also issue a package of warrants that brings the effective price per share down to NIS 6.

Internet Gold is offering four million shares and two million warrants, and will raise NIS 30-60 million, depending on the final offering price. Full exercise of the warrants will bring the total amount raised to over NIS 100 million.

Internet Gold is raising capital because of its shaky financial position and in order to improve its liquidity. The talks on the sale of its stake in B Communications are at a valuation estimated at about NIS 1 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on June 11, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Doron Turgeman  photo: Shlomi Yosef
Doron Turgeman photo: Shlomi Yosef
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