1 / 11

March 2010 - PowerPoint PPT Presentation

  • Uploaded on

INTERNET GOLD MOVING ON - THE BEZEQ ERA. March 2010. Forward-Looking Statement.

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'March 2010' - viveka

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
March 2010



March 2010

March 2010

Forward-Looking Statement

This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that are not historical facts and may include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Those factors include the factors indicated in our filings with the Securities and Exchange Commission (SEC). For more details, refer to our SEC filings and the amendments thereto, including our Annual Report on Form 20-F and Current Reports on Form 6-K. We undertake no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in our expectations, except as may be required by law.

March 2010

Traded on TASE

Traded on NASDAQ

Eurocom Group overview

  • Founded in 1979

  • One of Israel’s largest privately owned holding companies with a strong presence in Israel and a growing presence internationally

  • Owned by Shaul Elovitch, Chairman of the Board of Directors and CEO (80% ownership) and Yosef Elovitch, Director (20% ownership)

  • Solid financial base coupled with strategic partnerships to ensure the strong backing necessary to accelerate growth

  • Diversified portfolio with investments in telecommunications, media, real estate, consumer electronics and financial services


Service providers

Telecom & Electronic products



Real Estate

Eurocom Cellular Communications (NOKIA)

Smile Media

Internet Gold

Eurocom Capital


Eurocom Real


Radius Broadcasting

012 Golden Lines

Eurocom Capital


Eurocom Global

Real Estate

Eurocom Digital Communications (Panasonic)

Radio Hashfela

YES–Satellite Service

Sahar Investments

Space Communication

Pilat Media Global

D.M Engineering

Satlink Communication


Satcom System (Gilat Satcom)


March 2010

The IGLD / Eurocom Group:Experienced, Disciplined Leadership

SHAUL ELOVITCH Founder & Chairman 30 yrs track record of building leading communications and other businesses


  • Strategy creation & strategic planning

  • Marketing & brand development

  • Operational & financial management

  • Management of mergers & acquisitions

  • Creation of partnerships

  • Capital raising: 4major transactions closed in last 3 years`

ELI HOLTZMAN Co-Founder and CEO since 1992

30 yrs of operational & marketing experience

DORON TURGEMANCFO since 2001 15 yrs experience in financial management; 13 years experience in communications


March 2010

Acquisition of the controlling interest of approximately 30.7% of share capital in Bezeq

All-cash consideration of NIS 8.00 per Bezeq share, representing ~ 20% discount to Bezeq's closing price of NIS 9.72 as of February 15, 2010

012 Smile will be entitled to interim dividends thus reducing the effective final purchase price

Aggregate transaction value of NIS 6,513 million / US$1,763 million (pre Bezeq’s dividend)

Overview of Bezeq’s Transaction

Key terms

  • Funds from the sale of 012 Smile.Communications assets and current cash reserves of the Smile Group

  • Proposed capital raise

  • Assumed dividend from Bezeq (H2 2009 profits)

  • Additional long-term loan (to be completed)

  • Long-term loan from consortium of lenders, led by Bank Hapoalim


Required approvals

  • Ministry of Communications and Antitrust Commissioner

  • Prime Minister and the Minister of Communications of the State of Israel

  • All closing conditions must be satisfied within six months from signing

  • 012 Smile designees will be appointed to Bezeq’s board at the Closing



1 Note: FX rate: US$ 1 = NIS 3.695 as of October 22, 2009

March 2010

Group’s Structure (Pre/Post transaction) 30.7% of share capital in Bezeq

Pre Transaction

Post Transaction

Eurocom Group*

Eurocom Group



Internet Gold- Golden Lines

Free float






Internet Gold- Golden Lines

Free float



Free float


012** Smile.Communications




Free float


012 Smile.Communications


Free Float

Fixed-line, broadband infrastructure, data com.



Mobile telephonyand data

Operational assets



ILD, ISP,enterprise solutions

Call centreservices


Source: Company information, Bezeq’s investors’ presentation

* Eurocom holds approximately a 1.6% direct interest in Smile

** 012 Smile legacy telecommunications assets were sold to Ampal on January 31, 2010.

*** through two wholly owned SPC’s (special Purpose Corporations)



Pay-TV (DTH)

Internet portal


Traded on TASE

The transaction is already financed
The transaction is already financed 30.7% of share capital in Bezeq:

1 ** Based on Bezeq’s declared dividend policy

March 2010

IGLD Group Becomes the Undisputed Leader of Israeli Telecom 30.7% of share capital in Bezeq

Source: Source: Smile's analysis based on published market data 


March 2010

Bezeq’s Dividend Policy: 100% Of Earnings 30.7% of share capital in Bezeq

Source: Bezeq

1. Based on regular and special dividends paid during the fiscal year

2. Special dividend paid in February 2007


Additional igld upside smile media holdings
Additional IGLD Upside: Holdings 30.7% of share capital in Bezeq Ltd.



~75M:Estimated Revenues 2010

March 2010

The acquisition of the controlling stake in Bezeq is the realization of our goal to become Israel’s leading telecom player

Bezeq is the market leader in the Israeli telecommunication market

Bezeq has a strong business profile due to its diversified lines of business in the Israeli telecommunication sectors

Bezeq has the ability to generate strong cash flows to service financial obligations

The IGLD / Eurocom Group is Entering an Exciting New Phase

Thank You!