CELLCOM
ISRAEL LTD. ANNOUNCES AN AGREEMENT FOR THE SALE OF PLOT IN MODI'IN
ISRAEL
While
the Company has not issued any
report concerning the development set forth below, the Company’s controlling
shareholder will provide an immediate report about this development under
its
Israeli reporting requirements and, consequently, the Company is filing this
Form 6-K.
Netanya,
Israel – December
10,
2007 –
Cellcom
Israel Ltd. (NYSE: CEL)
(the "Company"), announced that on December 10, 2007, further to its
announcement on December 6, 2007 regarding negotiation for the sale of its
rights in a plot in Modi’in, Israel, the Company signed an agreement (containing
generally accepted terms) for the sale of the asset to Bayside Land Corporation
Ltd., which is controlled by the controlling shareholder of the Company,
for the
sum of NIS 39 million plus value added tax. The transfer of rights to
the buyer is subject to the consent of Israel Land Administration, or ILA.
The
Company shall bear certain payments if demanded by the ILA, including due
to the
Company's failure to comply with its development obligation regarding the
plot.
However, the Company shall have the right to terminate the agreement, should
such payment exceed 3% of the consideration, unless the parties or either
of
them, decides (subject to the requisite corporate approvals) to pay the
excess.
The
agreement is subject to all corporate approvals of both parties, as required
under Israeli Companies Law and shall come into force only after such approvals
are obtained. The approvals are not expected before the first quarter of
2008.
The agreement shall terminate if such approvals are not obtained within 90
days
from the date of the agreement.
If
the
transaction is completed, the Company is expected to record a one time gain
of
NIS 14-16 million, which takes into account payment to the ILA of up to 3%
of
the consideration. Until the transaction is finalized, the Company can provide
no assurance as to its completion and/or the gain to be recorded by the Company
as a result of such transaction, if completed.
For
additional details see our most recent annual report on Form F-20 for the
year
2006 under “Item 4 – Information on the Company – D. Property, Plant and
Equipment – Real Estate in Modi’in”.
Forward
Looking Statement
The
information included in this press release contains, or may be deemed to
contain, forward-looking statements (as defined in the U.S. Private Securities
Litigation Reform Act of 1995 and the Israeli Securities Law,
1969). Said forward-looking statements, relating to the completion of
the transaction and the gain to be recorded, are subject to uncertainties
and
assumptions relating to the aforesaid corporate approvals and/or demand for
payment to ILA; The ultimate results of which could lead to materially
different outcome than those set forth above.
About
Cellcom Israel
Cellcom
Israel Ltd., established in 1994, is the leading Israeli cellular provider;
Cellcom Israel provides its 3 million subscribers with a broad range of value
added services including cellular and landline telephony, roaming services
for
tourists in Israel and for its subscribers abroad and additional services
in the
areas of music, video, mobile office etc., based on Cellcom Israel's
technologically advanced infrastructure. The Company operates an HSDPA 3.5
Generation network enabling the fastest high speed content transmission
available in the world, in addition to GSM/GPRS/EDGE and TDMA networks. Cellcom
Israel offers Israel's broadest and largest customer service infrastructure
including telephone customer service centers, retail stores, and service
and
sale centers, distributed nationwide. Through its broad customer service
network
Cellcom Israel offers its customers technical support, account information,
direct to the door parcel services, internet and fax services, dedicated
centers
for the hearing impaired, etc. In April 2006 Cellcom Israel, through Cellcom
Fixed Line Communications L.P., a limited partnership wholly-owned by Cellcom
Israel, became the first cellular operator to be granted a special general
license for the provision of landline telephone communication services in
Israel, in addition to data communication services. Cellcom Israel's shares
are
traded both on the New York Stock Exchange (CEL) and the Tel Aviv Stock Exchange
(CEL).
For
additional information please visit the Company's website
http://investors.ircellcom.co.il