Fiber optic venture deposits NIS 300m guarantee
IEC will own 40% of the venture, and the ViaEuropa-Cisco consortium will own 60%.
The Israel Electric Corporation (IEC) (TASE: ELEC.B22) fiber optic venture has deposited the project’s NIS 300 million guarantee required by the tenders committee. NIS 100 million was deposited in cash and the rest in guarantees.
The tenders committee is now examining the guarantee’s legal aspects to ensure that everything is proper, and will soon formally close the deal. IEC and its partners will soon establish a joint venture, which will apply to the Ministry of Communications for a license, and will seek offices and a CEO.
The venture’s chairman is Zeev Goldberg, an investment banker who coordinated the tender for ViaEuropa AB and Cisco Systems Inc. (Nasdaq: CSCO). His commitment to serve for one year was one of the conditions for the companies’ Israeli partners to join the venture.
IEC will own 40% of the venture, and the ViaEuropa-Cisco consortium will own 60%. Cisco and ViaEuropa own half of the consortium, and the Israeli partners BATM Advanced Communications Ltd. (LSE: BVC; TASE: BATM), Rapac Communication and Infrastructure Ltd. (TASE: RPAC), Pujo Zabludowicz’s Tamares Ltd., and the Zisapels’ Bynet Data Communications Ltd. own the other half in equal shares.
Published by Globes [online], Israel business news – www.globes-online.com – on July 9, 2013