M&A

29 October, 2009

TEXT-Scailex purchase of Partner from Hutchison closes

(The following was issued by Israel's Partner Communications (PTNR.O) (PTNR.TA)):

Oct 29 - Partner Communications Company Ltd ("Partner" or the "Company") (NASDAQ and TASE: PTNR), a leading Israeli mobile communications operator, notes the closing of the transaction between Advent Investments Pte Ltd. ("Advent") a wholly owned subsidiary of Hutchison Telecommunications International Ltd ("Hutchison Telecom") and Scailex Corporation Ltd ("Scailex"), an Israeli corporation listed on the Tel Aviv Stock Exchange, pursuant to which Advent sold to Scailex its entire 51.2 percent equity interest in Partner for a consideration of approximately 5.3 billion shekels, which represents approximately 67 shekels per Partner share.

In parallel to the closing of the transaction, and as a result of various subsequent transactions, Scailex and its affiliates hold approximately 45 percent of Partner's outstanding shares.

Following the completion of the transaction, Advent directors resigned from Partner's Board of Directors and the following new directors were appointed: Mr. Ilan Ben Dov, Scailex's chairman and controlling owner, Mr. Yacov Gelbard, chairman of Tefron Ltd., Mr. Yahel Sachar, Sailex's CEO and Mr. Yaron Bloch, Deputy CEO of Leumi Partners Ltd.

Mr. Canning Fok, Hutchison Telecom's chairman, commented: "We are proud to have built Partner into a respected and valuable company. I would like to take this opportunity to thank the management team and all the staff at Partner for their dedication and hard work throughout."

Mr. David Avner, Partner's CEO, commented: "I would like to congratulate Scailex, its business partners and Scailex's chairman, Mr. Ilan Ben Dov, for the successful completion of the acquisition of Partner's controlling interest and warmly welcome them on board.

"Partner is an outstanding company and I am convinced that the entry of a new controlling shareholder will take the Company to new heights while building upon the tremendous assets it has built over the last decade, foremost of these being Partner's human resources and unique corporate culture as well as our service and brand leadership.

"I would also like to take this opportunity to thank Hutchison Telecom and its chairman, Mr. Canning Fok, for creating such a high standard company and providing Partner with an everlasting support that made it the leading telecom company it has become."

Mr. Ilan Ben-Dov, Scailex's chairman, commented: "I am thrilled and proud to have successfully completed the acquisition of the controlling interest in Partner and very excited at the prospect of joining such a valued company. Partner is one of the strongest and most valued companies in the Israeli economy, and I look forward to working with Partner's excellent management team and dedicated employees to continue and prosper in the future."

Shareholders are referred to the announcement made by Scailex earlier today for more details.

Source: http://www.reuters.com