June 12, 2018 / 8:08 AM / a year ago

Israel's Internet Gold sells 8.8 mln shares in private placement

TEL AVIV, June 12 (Reuters) - Israel’s Internet Gold-Golden Lines said it sold 8.8 million shares via a tender offer to certain institutional and private investors and expects gross proceeds of 100 million shekels ($28 million).

On Sunday the company said it was considering offers to sell part or all of its shares in B Communications, through which it controls Israel’s largest telecoms group, Bezeq .

“We will continue to assess all available alternatives to increase value for our shareholders and act in the interest of our debenture holders,” Chairman Ami Barlev said.

Each share was priced at 11.25 shekels. The company also issued warrants to buy 4.4 million shares at 11 shekels each.

As directed by court-appointed special liquidators, Eurocom Communications, Internet Gold’s indebted controlling shareholder, also participated in the private placement and is maintaining its same holding in the company. Eurocom bought 4.8 million shares and 2.4 million warrants.

Internet Gold plans to use proceeds of the private placement to support its ongoing operations and service its debt. ($1 = 3.5713 shekels) (Reporting by Tova Cohen, Editing by Ari Rabinovitch)

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