between 2019 and 2023.

Pelephone’s profit fell 28.4%.

Bezeq, which will turn it into a complete

communications company.”

Bezeq controlling shareholder Shaul Elovitch will lose between NIS 450 million and NIS 800 million on his personal stake in Yes.

Since first investing in the company sixteen years ago, the adjusted cost of Eurocom totaled NIS 1.5 billion, and Eurocom drew neither dividends nor management fees from Yes.

Bezeq CEO Stella Handler said, “This is a strategic deal for Bezeq, which will turn it into a complete communications company. The closing of this deal will make it possible for Bezeq to offer packages of services that include content for the first time, like the leading communications companies around the world, and to create synergies that were hitherto impossible. Buying Yes is excellent news for the company’s customers, who will be able to enjoy a full suite of products with the uncompromising service standard to which Bezeq customer have grown accustomed.”

The deal was made possible by a special committee set up by Bezeq’s board last year. Because this was a party at interest deal, the committee was comprised solely of external directors. The committee was assisted by Merrill Lynch International of the the Bank of America Group and other experts in issues regarding the deal.

The sale of Eurocom’s stake in DBS Satellite Services (1998) Ltd. (Yes) to Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) has been approved by the Bezeq board of directors, according to an announcement made by Bezeq to the Tel Aviv Stock Exchange (TASE) today. In the deal, Bezeq will buy Eurocom’s shares in Yes (50.22%), as well as the loans issued to the company by its owners totaling NIS 1.538 billion.

The shares will be bought for between NIS 680 million and NIS 1.05 billion, depending on milestones. The immediate payment to Eurocom will be NIS 680 million cash, plus up to NIS 200 million depending on tax synergies, and up to NIS 170 million more depending on Yes’s business performance over the next three years.

Analyst Roni Biran is concerned about delays over the Yes

merger.

Outgoing Communications Minister Gilad Erdan is opening the

fixed-line market to competition.

advantage of strong demand.

Israeli telecommunications company Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) planned to raise NIS 700 million through an extension of two existing bond series. Due to strong demand in the offering to investment institutions, however, the volume of the offering reached NIS 1.15 billion. The extended series were Series 6 of index-linked bonds with an effective interest rate at issue of 1.73% and Series 7 of shekel-denominated bonds whose price reflected a 2% effective interest rate. Standard & Poor’s Maalot Ltd. rated Bezeq’s offering ilAA p to NIS 1 billion in par value. Bezeq, controlled by Shaul Elovitch, which trades at a market cap of NIS 18 billion, is slated to distribute a NIS 1.3 billion dividend on October 2, subject to approval by the annual shareholders’ meeting.

stay in second and third places.

Cellular operators Cellcom Israel Ltd.(NYSE:CEL; TASE:CEL) and Partner Communications Ltd. (Nasdaq: PTNR; TASE:PTNR), which have been having a tough time coping with the growing competition in the sector in recent years, were in second and third place, respectively. Cellcom’s revenue plunged 17% to NIS 5 billion in 2013, while Partner’s revenue sank 19% to NIS 4.5 billion.

Hot Telecommunication Systems Ltd. (TASE:HOT.B1) was the only one of the five communications groups to increase its revenue in 2013, gaining a miniscule 0.9% to NIS 4.2 billion. In fifth place was DBS Satellite Services (1998) Ltd. (YES), whose revenue was down 0.1% to NIS 1.6 billion.

Bezeq was the only telecommunications group with a profit ratio of more than 10% – its NIS 1.7 billion net profit reflected an 18.5% profit ratio. Hot was the only group whose profit ratio declined (by 1.5%) and the only one to post a loss (NIS 6.2 million). The five leading telecommunications groups in 2013 had an aggregate profit ratio of 6.5%.

The five leading groups had almost NIS 25 billion in aggregate revenue, and jointly employed 27,000 workers.

Conference that the need for bandwidth is infinite.

“Broadband growth will continue forever,” said Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) VP Marketing Ran Guron at the “Globes” MAD (Media Advertising Digital) conference in Tel Aviv today

Guron said, “What sets us apart is that the need for our product is infinite – in other markets, it is limited. For example, how many pairs of shoes does a person really need? In the case of bandwidth, there is a need. Demand is growing. The uniqueness is that soon the market will switch to fiber optics. The world is racing to find solutions for the hunger that exists for bandwidth. Everyone is talking about it now, and it creates investments. Ultimately, we want to bring fiber optics to every house in Israel. This is isn’t something that forces people to purchase our services – we won’t have to put our foot in doors.”

Guron spoke about the fiber-optics project called Bfiber: “At the end of the year, we will reach a million households. This means that if you open the closet in your building’s stairwell, there will be a roll of fiber optic cable. This will be the biggest fiber-optics project in Israel. Denmark, for example, reached 40% coverage in its main cities. We have begun deployment in more than 60 towns.”

Speaking about the future of fiber optics Guron said: “Service over the Bfiber network will provide guaranteed bandwidth, with no dependence on neighbors. You will be able to receive the service easily; joining will be simple. Bezeq is deploying the Bfiber network up to the customer’s home with the aim of enabling Internet services at especially high speeds. Already today, the process of deploying fiber optics throughout the country is underway, and the network already covers hundreds of thousands of homes form Kiryat Shmona to Eilat. At the end of the year, the new network will cover nearly a million homes and businesses, representing 40% of the total population of Israel. This deployment rate is considered very fast, and has comprehensive coverage, even when compared with other advanced countries. The network is being deployed throughout the country concurrently – in central Israel, and in the periphery.”

Kibbutz Sdot Yam selling 5.5 million Caesarstone shares

Kibbutz Sdot-Yam is selling 5.5 million ordinary shares in Caesarstone, the maker of engineered quartz surfaces it founded, the company said on Wednesday. The shares, the sale of which will be conducted through a public offering, are worth about $265 million at Caesarstone’s current price and will reduce the kibbutz’s stake in the company to 35.5% from 55%. Underwriters led by J.P. Morgan Securities LLC and Barclays Capital will be granted a 30-day option to purchase up to 825,000 additional ordinary shares from the selling shareholder. Caesarstone said it would not receive any proceeds from the offering. Shares of Caesarstone, which rose nearly 60% in the past year, were down 2.5% to $46.22 in New York in early trading. (TheMarker Staff)

Rami Levy boosts sales in difficult market

Rami Levy overcame a fall in consumer spending and a late Passover holiday this year to raise revenues 7.7% from a year ago to 812.8 million shekels ($234 million), the supermarket chain said Thursday. Same-store sales were up 3.3%. Neverthless, operating profit fell 6.7% to 32 million shekels due to higher selling and marketing costs as well as the sale of real estate in 2013 that raised the year-earlier figure. “Preparation for the Passover holiday at stores occurred in March this year while the holiday sales were in April,” Levy explained. Earnings before interest, taxes, depreciation and amortization fell to 38.7 million shekels from 40.3 million shekels a year ago. Shares of Rami Levy fell 3.2% to 168.10 shekels in Tel Aviv. (Eran Azran and Shelly Appelberg)

Ashtrom completes 280-million-shekel IPO

Ashtrom completed its initial public offering on Wednesday after the property company and its underwriters to win over investors. The company sold about 280 million shekels ($80.6 million) in shares, giving the public a 20% stake and, with post-money valuation of 1.5 billion shekels, winning it a place in the TA-100 index. But underwriters put in as much as 60 million shekels in orders while the company lowered in valuation to 1 billion shekels from as much as 1.4 billion shekels. In addition, Ashtrom sold 1.2 billion shekels in bonds rated A by S&P Maalot in two series, one paying 5.4% and due over 2016-2025 and a second due in 2017-2025 paying 2.4%. (Michael Rochvarger)

Markets ends higher for week despite Thursday decline

Tel Aviv shares ended lower Thursday but still gained for the week as many global markets touched record highs. The benchmark TA-25 index closed down 0.3% at 1,393.42 points, as 1.82 billion shekels ($520 million) in shares changed hands, leaving it up 0.3% for the week. The May options on the TA-25 were fixed in the morning at 1,395.85 points. The TA-100 ended down 0.4% at 1,256.99 but up 0.5% for the week. Among the biggest losers, Clal Biotechnology dropped 5.5% to 8.54 shekels and Gilat Satellite 5% to 16.74. Teva Pharmaceuticals, the volume leader, closed 2.5% down at 174.10 shekels. In the fixed income markets, the government’s 10-year shekel bond rose 0.28% to reduce its yields to 2.91% while its inflation-indexed bond due in 2023 rose 0.23% to trim the yield to 0.79%. (Eran Azran)