Elovitch to buy controlling stake in Bezeq -paper

TEL AVIV, Oct 23 (Reuters) - The Apax-Saban-Arkin group plans to sell its 30.7 percent stake in Bezeq Israel Telecom (BEZQ.TA: Quote, Profile, Research) to businessman Shaul Elovitch for 7 billion shekels <$1.9 billion), TheMarker financial newspaper said on Friday.

The sale would net Bezeq's current controlling shareholders a pretax profit of over 300 percent on their original investment, including dividends and a surge in Bezeq's share price, TheMarker said.

The partners in Bezeq -- media mogul Haim Saban, businessman Mori Arkin and the Apax Partners private equity fund -- bought control of Israel's largest telecoms company four years ago from the government.

The deal has yet to be sealed though negotiations are at an advanced stage, TheMarker reported without citing sources.

The sale will also have to be approved by the Antitrust Commissioner and the Communications Ministry before it can be completed.

Elovitch owns, via his Eurocom Holdings group, a number of businesses in the communications sector. Eurocom controls Internet service provider and overseas long-distance firm 012 Smile Communications (SMLC.TA: Quote, Profile, Research), and 32 percent of satellite television broadcaster YES. Bezeq owns 49 percent of YES.

He also owns 57 percent of Spacecom Satellite Communications, the operator of the Amos satellites.

Eurocom has been seeking for several years to expand in the Israeli communications sector.

Elovitch will almost certainly be required to sell off some of his holdings to receive regulatory approval for the deal, TheMarker said.

Elovitch started in the communications business by importing Nokia cellular phones.

Bezeq officials declined to comment. ($1=3.69 shekels) (Reporting by Tova Cohen; Editing by Mike Nesbit)