By Sara Toth Stub

JERUSALEM--Scailex Corp (SCIX.TV), the controlling stakeholder in telecommunication company Partner Communications Co. (PTNR.TV), said Thursday it's close to selling most of its 44.5% stake in the cellular carrier to Saban Capital Group Ltd.

"The talks are very advanced and the company thinks that an agreement will be signed in the coming hours," Scailex said in a statement.

The Israeli-investment company, which has been holding talks with Saban since October, didn't disclose how much the U.S. private investment firm would pay for the stake, but it did say that Saban would take on $300 million in debt that Scailex owes to Hutchison Whampoa Ltd. (0013.HK), Partner's former controlling shareholder.

Scailex bought the stake in Partner for $1.38 billion in 2009. Hutchison lent Scailex some of the money for the purchase, but the deal gave Hutchinson the right to reacquire Partner at a later date. Scailex has been unable to pay off that loan due to a lack of dividends paid by Partner, and repayment of the loan has been postponed to 2018. It now has total debts of around $760 million.

Earlier this year, Hutchison almost acquired the controlling stake in Partner by buying 75% of Scailex from Suny Electronics Ltd. (SUNY.TV), but it pulled out of the proposed $125 million deal citing poor financial results at Partner and the increasing competition in Israel's recently-deregulated cellular sector.

Partner, like all of Israel's mobile communications companies, has seen lower profits this year due to the deregulation of the Israeli cellular market. Partner's third quarter net profit declined 25% to $336 million due to increased competition.

Saban invests in media, entertainment and communications sectors and is headed by Haim Saban, the television producer best known for producing Power Rangers.

Partner is the local franchisee of France Telecom's (FTE.FR) Orange brand.

On Thursday, shares of Scailex closed up 1.66 shekels ($0.44), or 27%, at ILS7.82, and shares of Partner closed up ILS0.96, or 4.05%, at ILS24.65, in a higher Tel Aviv market.

Write to Sara Toth Stub at realtimedesklondon@dowjones.com

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