012 Smile.Communications Ltd.  (SMLC) Trade Now »     Rate SMLC  -  Discuss SMLC  -  Add to Watch List        

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In a deal which shakes up the Israeli telecom sector, 012 Smile.Communications (SMLC) over the weekend announced a deal to buy a 30.6% stake in Bezeq, the largest Israeli phone company, for 6.5 billion NIS, or about $1.76 billion. The stake was acquired from a group of investors that includes Apax Partners and investors Haim Saban and Mori Arkin. 012 Smile is a telecom company 75.3% owned by Internet Gold - Golden Lines (IGLD). The deal came at a 7% discount to the public price of Bezeq shares.

Internet Gold (IGLD) shares are sharply higher this morning after the Israeli Web player posted strong Q1 results.

An Internet communications and content company, IGLD reported revenue of $72 million and a profit of 38 cents a share; the single analyst tracked by Thomson that covers the company had expected $65 million and 10 cents. The company said it had strong results at its majority owned 012 Smile.Communications (SMLC) unit. Revenues were up 8% from a year ago.

012.Smile (SMLC): “The firm noted that revenue decline reflects a significant year-over-year decline in revenues from hubbing services and a 14% year-over-year decline in the average shekel-dollar exchange rate.” (see article here). Earnings release here. See what IOI has written about SMLC and why some asset managers think it’s cheap.

Voltaire (VOLT): Stock up over 25% this week. Company reported earnings the market liked yesterday. Revenues are up, earnings are up, and margins up a lot. Earnings release here.