Polar Communications agreed with shareholders in the

Channel 2 franchisee to extend the deadline.

Polar Communications Ltd. (TASE: PLRC) notified the Tel Aviv Stock Exchange (TASE) today that, over the weekend, it reached an agreement with the shareholders in Channel 2 franchisee Reshet to extend the deadline for signing an agreement by four months. The company is due to sell its 13% stake in Reshet for NIS 5.2 million.

On Thursday, Polar Communications announced that the deal was cancelled after the deadline had expired. The announcement was very significant for Reshet, as the deal was the first step in bringing in new investors. In the second stage, Dutch content producer Endemol NV will invest in Reshet. The Second Television and Radio Broadcasting Authority have not yet approved this stage, as it is still waiting for documents related to Endemol and its shareholders.

The Second Television Authority’s legal department began discussing the subject in December 2013, and it has subsequently been demanding more and more documents from Reshet and Endemol before approving the deal.

Meanwhile, Reshet has obtained one of the two permits it needs from the Antitrust Authority. After obtaining approval in principle for the acquisition, the franchisee is still waiting for permission for Endemol to operate in the Israeli production market.

Published by Globes [online], Israel business news – www.globes-online.com – on March 2, 2014