A huge deal in the Israeli communications market: Fortissimo investment fund will acquire control of Cellcom, at a value of NIS 2.6 billion. The fund will acquire its holding (36%) from Deskas for NIS 925 million. Fortissimo signed a non-binding memorandum of understanding with Cellcom Discount Investments' controlling shareholder on Monday. The company was given two weeks of exclusivity to conduct due diligence, at the end of which the parties can sign an agreement.
Fortissimo Capital is a private Israeli investment fund founded in 2004 by Yuval Cohen, who manages it to this day. Most of its investments are in industrial and technology companies, including Sugat, SodaStream, Slopark Technologies, Al Erez Milling and more.
Discount Investment Company Ltd. issued a notice to TASE on the subject: Entering into a non-binding memorandum of understanding for the sale of Cellcom Israel shares.
The announcement stated: "Following the report of Discount Investment Company Ltd. dated November 28, 11, regarding contacts with a number of entities that may and will mature into an engagement with one of them in a non-binding memorandum of understanding for the sale of its holdings in Cellcom Israel Ltd., the Company is pleased to update that on December 2023, 4, it entered into a non-binding memorandum of understanding with Fortissimo Capital Fund for the sale of all of its holdings (about 12.2023%) in Cellcom at a value of NIS 35.6 billion to Cellcom, This reflects consideration of NIS 2 million for the company's holdings in Cellcom.
"In accordance with the terms of the MOU, the buyer was given two weeks to perform due diligence and enter into a binding purchase agreement, which will be subject to receipt of the required regulatory approvals. During this two-week period, the Company undertook exclusivity to the Buyer and will not be entitled to negotiate with other potential Buyers.
"It should be emphasized that there is no certainty that the engagement in the MOU will lead to the entering into a binding agreement for the sale of the shares and/or its completion, if signed."
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