Internet Gold: Searchlight transaction expected to close by Oct. 31

By Caroline Salls

Pittsburgh, Oct. 7 – Internet Gold - Golden Lines Ltd. announced Monday that B Communications Ltd. expects to close the “Searchlight transaction” under a settlement plan agreement between Internet Gold, BComm, Searchlight II BZQ, LP and T.N.R. Investments Ltd. by Oct. 31.

According to the press release, upon closing, Internet Gold will sell its entire holdings in BComm for NIS 225 million and will invest NIS 345 million in BComm, comprised of the amount to be paid by the Searchlight entities as purchasers and an additional amount of NIS 120 million.

Internet Gold said it will receive NIS 310 million par value of series C debentures of BComm as well as 8,383,234 ordinary shares of BComm.

Conditions to closing include the issuance of a control permit to the purchasers by the Israel Ministry of Communications.

As previously reported, if the Searchlight transaction is completed, Internet Gold will not be able to fully pay its debt, and the company intends to initiate a creditors’ arrangement that would be submitted to the applicable Israeli court.

Under the arrangement the existing Internet Gold shares are expected be nullified, and creditors of the company are expected to receive 100% of the shares of Internet Gold.

Internet Gold said it has been exploring potential strategic alternatives, including the acquisition of a new business in consideration for its shares or a sale of the company as a shell company.

Internet Gold is a telephone and internet provider based in Ramat Gan, Israel.

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