Electra to buy Golan Telecom

Electra takes loans to buy Golan Telecom.

Arutz Sheva Staff,

Samsung Galaxy 4
Samsung Galaxy 4
Yoni Kempinski

Electra Consumer Products is expected to buy mobile network operator Golan Telecom for 350 million NIS. Electra will pay Golan's owners 90 million NIS outright, and Cellcom will loan 130 million NIS to Electra to aid them in making the purchase. In addition, Electra will take another 130 million NIS as a bank loan.

Former Pelephone CEO Gil Sharon will serve as CEO of Golan Telecom.

Golan owes Cellcom 600 million NIS, and debates regarding who will buy Golan and what will happen to Golan customers have continued for several months.

The current agreement stipulates Electra will pay Cellcom 200-250 million NIS in user fees for the next decade. This amount will include and help cover Golan's current debt.

Golan has had financial difficulties for over a year, and creditor cellphone company Cellcom was reported several times as planning to buy the newer company. However, the government is interested in diversifying the market, and was therefore hesitant to allow the merge. In fact, the sale was about to go through when Israeli Prime Minister Binyamin Netanyahu canceled it.