HOT shareholders approve Mirs acquisition

HOT was trying to persuade institutional investors in the company to vote in favor of the deal, they opposed the NIS 1 billion price tag in cash.

By SHIRI HABIB-VALDHORN / GLOBES
September 20, 2011 22:51
1 minute read.
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man speaking on cell phone cellular 311 (R). (photo credit: REUTERS/Fred Prouse)

 
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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.

In recent 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.


Drahi owns 51.7 percent of HOT and could not vote in the shareholders meeting because he is a party at interest.

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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.

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