June 2, 2021

Elco receives approval from the Communications Minister for holdings in DIC Ltd.

Following the approval, Elco is expected to soon complete the acquisition of 29.8% of the shares of DIC from the Receiver for the sum of about 400 million shekels * No control agreements were signed between the various company shareholders and therefore DIC will continue to operate under the definition of a company without a control core

Omri Cohen 02.06.2021

Today, Elco Holdings Ltd. obtained the approval of the Minister of Communications for its investment in Discount Investment Corporation (DIC), which holds the controlling shares (46.1%) in Celcom.  Following the approval, Elco is expected to soon complete the acquisition of 29.8% of the DIC shares from the Receiver for the sum of about 400 million shekels.

After the acquisition, Elco will join the two largest shareholders who already hold DIC shares, Mega Or (29.9%) and Rami Levy (10.8%).  However, the various shareholders of the company did not sign control agreements and therefore DIC will continue to operate under the definition of a company without a control core.

Completion of the shares acquisition by Elco will mark the end of a move that began in September last year, during which the Tel Aviv District Court decided to appoint a liquidator for I.D.B. and to appoint receivers for the controlling shares (82.26%) of Discount Investment Corporation, that were mortgaged in favor of I.D.B. and its creditors.  After that appointment, the receivers and the liquidator led a tender to sell the shares, and finally the investment group led by Mega Or was chosen as the winner.

Over two months ago, Mega Or completed the acquisition of its share of DIC, after obtaining the necessary approvals from the Competition Authority and the Ministry of Communications.  Elco, which joined the group of buyers at a later stage, waited for the required approvals.  It first received approval from the Competition Authority, and as stated, today it also received approval from the Ministry of Communications.

The original Hebrew version of this article can be found here.

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