Calcalist – 19.2.20
Electra Consumer Products’ Extraordinary Return on its Investment in Golan Telecom: Times 8 in Only 3 Years
In January 2017, the company controlled by Mike and Danny Salkind acquired Golan Telecom for NIS 350 million, of which only 80 million in equity; From Golan’s acquisition by Cellcom, Electra exits with NIS 557 million - 8 times more than equity it invested
Electra Consumer Products recorded an exceptional eight-fold return on its investment in Golan Telecom following Cellcom's acquisition of the company, which was completed yesterday, Wednesday. Exceptional, because the return was achieved in only three years.
The acquisition transaction in January 2017, during which Electra Consumer Products acquired Golan Telecom for NIS 350 million, was initiated by Gil Sharon - who also entered as a partner with 10% of Golan Telecom shares. Electra Consumer Products, controlled by Mike and Danny Salkind - who serves as the company's chairman - invested only NIS 80 million in equity.
The remaining amount is a NIS 130 million loan from Cellcom, which Cellcom waived in the current transaction, and an additional loan from Nizrahi-Tefahot Bank in the amount of NIS 140 million - which in the meantime has been fully repaid from Golan's profits.
Golan Telecom is selling for NIS 590 million, but Electra Consumer Products, according to its report from yesterday, shall also receive NIS 67 million in cash, so that it exits the investment with NIS 557 million - exactly 8 times the equity invested. Even the major Israeli investment funds, FIMI and Fortissimo, do not remember such a return on investment.