Bloomberg News

Bezeq Gains Most in 3 Weeks on Yad-2 Sale Price: Tel Aviv Mover

May 07, 2014

Bezeq Israeli Telecommunication Corp. (BEZQ) climbed the most in three weeks as investors bet its dividend will beat expectations after a unit agreed to sell the Yad-2 classifieds portal business for more than anticipated.

Shares of Israel’s largest fixed-line provider increased 1.8 percent, the most since April 16, to 6.35 shekels at 1:22 p.m. in Tel Aviv. The company, which gained 42 percent in the past year, has the highest 12-month gross-dividend yield of all those traded on the benchmark TA-25 index, according to data compiled by Bloomberg. The gauge declined 0.3 percent.

Bezeq’s Walla! unit entered a binding accord to sell the Yad-2 business to Germany’s Axel Springer Digital Classifieds Holding GmbH for 787.5 million shekels ($228 million) in cash, the company said yesterday. That’s well above the multiple that the European publisher Springer has paid historically for classified ad segment companies, according to Bloomberg Industries. The sale will hand Bezeq a pretax profit of 560 million shekels, athe company said in a Tel-Aviv bourse filing.

“The market was expecting a sale at a price of 300 to 350 million shekels,” Ori Licht, head of research at Israel Brokerage & Investments Ltd., with more 27 billion shekels in assets, said in an e-mailed note today. “We can expect a dividend payment of 1.3 billion shekels in October, higher than the 850 million shekels payment expected for the first half.”

B Communications Ltd. (BCOM) which holds a 30.88 percent stake in Bezeq, advanced 2.9 percent, the most since May 1, to 63.40 shekels. Internet Gold-Golden Lines Ltd. (IGLD:US) which holds a 67.99 percent stake in B Communications surged 6.7 percent, the biggest jump since Feb. 20, to 34.09 shekels.

To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net

To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net Claudia Maedler


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  • IGLD
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