man speaking on cell phone cellular 311 (R).
(photo credit: REUTERS/Fred Prouse)
After several postponements, HOT Telecommunication Systems Ltd’s disinterested
shareholders on Tuesday approved the company’s acquisition of Mirs
Communications Ltd. for NIS 500 million in cash and NIS 450m. in future
milestone payments. The acquisition is a party-at-interest deal because Patrick
Drahi controls HOT through Cool Holdings Ltd. and owns Mirs.
weeks, HOT has been trying to persuade institutional investors in the company to
vote in favor of the deal, after they opposed it because of the NIS 1 billion
price tag in cash. In response, HOT restructured the deal.
51.7 percent of HOT and could not vote in the shareholders meeting because he is
a party at interest.
HOT’s institutional investors hold only small stakes
in the company, but their vote was critical as the parties at interest in the
deal may not vote on it. The proportion of disinterested shareholders voting
against the deal could not exceed 2%.
HOT’s acquisition of Mirs is part
of the consolidation in the telecommunications market.
HOT’s share price
rose 1.5% on Tuesday to NIS 48.10, giving a market cap of NIS 3.7b.