NETANYA, Israel, Nov. 27, 2016 /PRNewswire/ -- Cellcom Israel
Ltd. (NYSE: CEL) (TASE: CEL) (the "Company") announces that the
Company provides this report at the request of its controlling
shareholder, IDB Development Corporation Ltd., or IDB, in
connection with certain debt issuance contemplated by IDB.
Following previous reports, the Company is in advanced stages of
negotiations for a possible network sharing agreement (which will
also resolve past national roaming payment differences with Golan
Telecom Ltd., or Golan) with a third party interested in purchasing
Golan Telecom Ltd., or Golan. Such negotiations maturing into an
agreement is further dependent on such third party and Golan
reaching an agreement as to the purchase of Golan as well as Golan
and the Company reaching certain agreements as to the parties'
existing Share Purchase Agreement, or SPA and National Roaming
Agreement, which may also include interim arrangements. Any such
Company's agreements will be subject to the completion of
negotiations to the Company's satisfaction, the approval of the
Company's board of directors, the acquisition of Golan by such
third party and the receipt of all regulatory approvals for the
purchase and network sharing agreements. The Company cannot
estimate the timing and results of any of the abovementioned
negotiations, whether and when such negotiations shall mature into
agreements and whether such agreements shall be approved by the
regulators.
Further, following previous reports regarding Golan's failure to
pay the Company all due amounts for national roaming services and
asking the court to declare it does not owe the Company the
previously reported past national roaming payment differences,
Golan rejected the Company's demand it pays the NIS 600 million on December 3, 2016, according to the SPA. In case
such failures are not resolved shortly to the Company's
satisfaction, the Company will continue the legal proceedings
already commenced against Golan and may take additional measures,
including filing a liquidation request against Golan. The Company
cannot estimate the timing of such legal proceedings, what the
decision in such proceedings will be, or their impact on the
Company's ability to collect amounts owed by Golan or to generate
future revenues from Golan. As previously reported, a substantial
reduction of the future revenues from Golan will have a material
adverse effect on the Company's revenues and results of
operations.
For additional details see the Company's 2015 Annual Report
under "Item 3 Key Information - D. Risk Factors– Risks Related to
our Business –We face intense competition in all aspects of our
business" and "- Risks Related to the Proposed Acquisition of Golan
Telecom Ltd." and under "Item 4. Information on the Company – B.
Business Overview - General - Agreement for the Purchase of Golan",
and under "-Competition – Cellular" and " - Government Regulation
–Additional MNOs", and the Company's current reports on Form 6-K
dated August 10, 2016 under "Other
developments during the second quarter of 2016 and subsequent to
the end of the reporting period – Golan Telecom", September 6, 12, 21 and 22, 2016, October 10, and November
14, 2016 under "Other developments during the third quarter
of 2016 and subsequent to the end of the reporting period – Golan
Telecom".
About Cellcom Israel
Cellcom Israel Ltd., established in 1994, is the largest Israeli
cellular provider; Cellcom Israel provides its approximately 2.822
million cellular subscribers (as at September 30, 2016) with a broad range of value
added services including cellular telephony, roaming services for
tourists in Israel and for its
subscribers abroad and additional services in the areas of music,
video, mobile office etc., based on Cellcom Israel's
technologically advanced infrastructure. The Company operates an
LTE 4 generation network and an HSPA 3.5 Generation network
enabling advanced high speed broadband multimedia services, in
addition to GSM/GPRS/EDGE networks. Cellcom Israel offers
Israel's broadest and largest
customer service infrastructure including telephone customer
service centers, retail stores, and service and sale centers,
distributed nationwide. Through its broad customer service network
Cellcom Israel offers technical support, account information,
direct to the door parcel delivery services, internet and fax
services, dedicated centers for hearing impaired, etc. Cellcom
Israel further provides OTT TV services (as of December 2014), internet infrastructure (as of
February 2015) and connectivity
services and international calling services, as well as landline
telephone communication services in Israel, in addition to data communication
services. Cellcom Israel's shares are traded both on the New York
Stock Exchange (CEL) and the Tel Aviv Stock Exchange (CEL). For
additional information please visit the Company's
website http://investors.cellcom.co.il/
Company
Contact Shlomi
Fruhling Chief Financial
Officer investors@cellcom.co.il Tel: +972 52 998 9755
|
Investor Relations
Contact Ehud
Helft GK Investor & Public
Relations In partnership with LHA cellcom@GKIR.com Tel: +1 617 418 3096
|
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SOURCE Cellcom Israel Ltd.