Apax Partners Funds, Saban Capital Group and Arkin Communications (Apax Saban Arkin Group) completes acquisition of controlling interest in leading Israeli telecom company Bezeq
11 October 2005
Tel-Aviv, Israel, October 11, 2005 - Funds advised by Apax
Partners, Saban Capital Group and Arkin Communications (Apax Saban
Arkin Group) today announced the successful closing of its
acquisition of the controlling interest in Bezeq (TLV: BEZQ.TA),
Israel's leading full-service telecommunications provider.
The group has acquired 30% of Bezeq's shares for 4.246 billion NIS
($923 million) and an option to purchase an additional 10.7% of the
shares within the next four years. With this acquisition, the group
has become the largest shareholder of Bezeq.
The closing today follows a long and complex sale process
managed by the Israeli Government, in which several groups competed
for acquisition of the shares, that culminated in the selection of
the Apax Saban Arkin Group as preferred bidder on May 9, 2005. The
official ceremony marking the completion of the acquisition is
expected to take place in November 2005.
Expressing their pleasure at the outcome of the process, the
Group stated that it intends to support Bezeq in its development as
Israel's leading telecommunications group by combining its proven
local capabilities with the international experience and know-how
of the Apax Saban Arkin Group.
The Group's representatives expressed their thanks to the Prime
Minister, the Minister of Communications, the Acting Minister of
Finance, the former Minister of Finance and the General Director of
the GCA (Government Companies Authority) as well as to the staff of
the Ministries of Finance, Communications and Justice and of the
team of advisors and consultants to the Group for their unstinting
efforts to bring the transaction to a fruitful conclusion. Special
thanks were offered to Bezeq's management and employees that have
steered the company through a difficult period following the
opening of the market to competition in all areas in which Bezeq is
active.
Transaction was financed by senior debt from co-arrangers Bank
Leumi and Bank Hapoalim as well as by a mezzanine syndicate
consisting of Harel Insurance, Menora Insurance, Mivtachim Pension,
DS Provident, Excellence Provident and Phoenix Insurance.
Goren Capital acted as financing advisor, M&A advice was
provided by Deutsche Bank and J.P. Morgan. Legal counsel
consisted of Zellermayer Pelossof & Co., Herzog, Fox &
Neeman and Rozenberg, Hacohen, Godard and Efrat.
Adam Chesnoff President and COO of Saban Capital Group:
"We believe that the Apax Saban Arkin Group's know-how and
international experience in the fields of communications, media and
content will be beneficial to the future development of Bezeq. With
the completion of the Bezeq purchase we renew our commitment to the
goal of providing a full range of advanced communications services
based on careful analysis of Israeli consumer needs. We believe
that the combination of local Israeli talent and the Group's
strategic capabilities will move Bezeq to the forefront of world
technology in these fields. Our focus now is rolling up our sleeves
and getting down to work in collaboration with Bezeq's management
team."
Allan Barkat, Partner, Apax Partners Worldwide LLP:
"Funds advised by Apax Partners have invested over 400 million
dollars in Israel over the past ten years and have now completed
their first buy-out in Israel, the acquisition of Bezeq, indicating
our commitment to the Israeli market. Apax Partners is proud
to have been involved in this ground breaking acquisition which
highlights how attractive Israel can be to foreign investors.
There is no doubt that the successful sale of Bezeq will serve as a
model for the privatization of Israeli companies in the
future."
Mori Arkin:
"The communications industry affects many facets of our lives.
Bezeq has an impressive communications capability based on a broad
technological infrastructure that serves every household in Israel.
As an Israeli, I entered the field of communications out of
recognition of its tremendous growth potential and I am now proud
to have joined forces in Israel with such strong international
partners. I believe that our combined efforts will create a new
Bezeq that will always be a step ahead in service to its customers
and competition in the marketplace."
About Bezeq
Bezeq is Israel's national telecommunications provider.
Established in 1984, the Company has led Israel into the new era of
communications based on the most advanced technologies and
services. Bezeq and its subsidiaries offer a comprehensive range of
services including local, long distance and international telephone
services, cellular communications, Internet and other data
communications, satellite services, leased lines and corporate
networks. Bezeq's shares are traded on the Tel Aviv Stock Exchange
under the symbol BEZQ. This bulletin and prior bulletins are
available on Bezeq's website at www.bezeq.co.il.
About Apax Partners
Apax Partners is one of the world's leading private equity
investment groups, operating across the United States, Europe and
Israel. Apax Partners has raised or advised approximately $20
billion around the world. With more than 30 years of direct
investing experience, Apax Partners' Funds provide long-term equity
financing to build and strengthen world-class companies. It pursues
a multi-stage equity investment strategy, investing in late
venture, growth capital and buyouts.
Apax Partners' Funds invest in companies across its global
sectors of Tech & Telecoms, Retail & Consumer, Media,
Healthcare and Financial & Business Services. For additional
information, see: www.apax.com
For more information, please contact:
Ben Harding
Head of Communications
T: +44 20 7872 6495
E: Ben.Harding@apax.com