Elco looks set to acquire Golan, ending Cellcom dispute

The unnamed party interested in acquiring Golan Telecom has been named as Israeli group Elco Holdings following the revelation that the deal looks set to go ahead.

If the acquisition closes, Golan should be able to settle its ongoing dispute with market leader Cellcom, which recently filed a liquidation request against the smaller operator.

Elco is believed to be on the verge of sealing the deal for IL350 million ($92 million), with Golan shareholder Patrick Pariente arriving in Israel to finalise details. It is understood that Elco is the sole party with which Golan is conducting negotiations, despite the fact that the group ended initial discussions a month ago due to a dispute over Golan’s terms and conditions.

Cellcom has begun legal action against Golan, demanding IL600 million from the smaller operator for national roaming services, along with other fees. However, the Elco deal reportedly includes a condition that would see the unification of Golan and Cellcom’s networks, as well as compensating Cellcom for its outstanding debt.

Both operators have accepted mediation in their ongoing dispute as they seek a resolution. While Cellcom is preparing for Golan’s liquidation, it has expressed that it would prefer a buyout by another party.

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