A few days after announcing his retirement from Cellcom, it was announced today (Wednesday) that Avi Gabay is one of the key people in the deal to acquire the competing company Partner.
Gabay has only completed two years in his position as CEO of Cellcom, and apparently his contract in it requires a cooling-off period of one year, as is customary. Gabay's contract, and it may be one of the clauses that the group has to deal with before signing the deal.
As reported in "Israel Today", Gabay's surprise departure from Cellcom was related to the fact that negotiations were underway to acquire a partner, in which Gabay apparently began even before retiring from the competing company.
The investor group has four institutional entities: the Phoenix that pushed the deal, Menora, Clal Insurance and the Mori Arkin group.
Gabay and Shlomo Rodev will hold 10% of the company's shares with the help of financing they will receive for most of their investment.
Rodev, like Gabay, previously served as CEO of Bezeq but also as CEO of Partner.
The controlling owner, Hutchison, will receive $ 300 million for control of the company - just over 27% of its shares.
The parties reached quick understandings, and among other things set a price for an "as is" transaction without an acceptable due diligence.
If no unexpected difficulties arise, the deal will be signed today.
This quick deal can be made thanks to Gabay and Rodev's close acquaintance with Partner, and probably also due to clear plans they have in hand that may improve the company.
Cellcom shares fell 3.5% yesterday.
Partner's share fell yesterday by 1.37% and was traded at a market value of NIS 3.56 billion, similar to the value of the deal.
Keren Ofek, Chairman of the Partner Employees' Committee, said: "We welcome the new purchasing group for the completion of the transaction, and expect that negotiations will be opened with the employees in the coming days on their share of the company's sales grant."
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