012 Smile.Communications Announces a NIS 3.9 Billion Financing Agreement with a Consortium Led by Bank Hapoalim to Fund Its Acquisition of the Controlling Interest in Bezeq - the Israel Telecommunication Corp.

Internet Gold - Golden Lines Ltd. (NASDAQ: IGLD) announced that its 75.34% owned subsidiary, 012 Smile.Communications Ltd. (Nasdaq: SMLC - News), a member of the Eurocom Group, announced that it has signed a NIS 3.9 billion (approximately $1.04 billion) financing agreement with a consortium led by Bank Hapoalim BM to facilitate the funding of the previously announced acquisition by the 012 Smile Group of the controlling interest in Bezeq - The Israel Telecommunication Corp., Israel's largest telecommunications provider (TASE: BZEQ).

The financing will be provided to the 012 Smile Group by a consortium led by Bank Hapoalim BM, which is expected to include Bank Leumi le-Israel BM, Amitim (Senior Pension Funds), Israel Discount Bank, Mizrahi Tefahot Bank, HSBC, First International Bank of Israel and Union Bank. Bank Hapoalim BM will serve as the manager of the loan.

In addition, Bank Hapoalim BM will provide the 012 Smile Group with a short-term loan in the amount of NIS 700 million (approximately $187 million). About 012 Smile.Communications In October 2009, Internet Gold announced that its approximately 75.34% owned subsidiary 012 Smile.Communications (Nasdaq: SMLC) has signed a definitive agreement to purchase the controlling interest (approximately 30.6%) in Bezeq, The Israel Telecommunication Corp., Israel's largest telecommunications provider (TASE: BZEQ).

Keywords: Acquisitions, Banking, Communications, Finance, Internet, Internet Gold, Mergers, Mobile and Wireless, Networks, Professional Services, Technology, Telecommunications.

This article was prepared by Telecommunications Weekly editors from staff and other reports.