Partner Communications Wins Court Approval for 500 Million NIS Dividend
Partner Communications received court approval to distribute a 500 million NIS special dividend after executing early bond redemptions to bypass creditor objections.
Partner Communications has secured approval from the District Court to distribute a special dividend of 500 million NIS. The decision follows the company's early redemption of two bond series that had previously opposed the payout. Judge Halit Silsh authorized Partner to proceed with the 500 million NIS dividend distribution, provided it is executed within four months.
Early Bond Redemption Secures Approval
Partner recently announced its intention to distribute the special dividend, funded through a 750 million NIS debt offering. Under legal procedures, company creditors have the right to object to such distributions, and bondholders in two separate series initially failed to provide the required majority approval.
To overcome this obstacle, Partner initiated an early redemption of Series H, followed by an early redemption of Series Z after failing to secure a majority vote there as well. In total, the company completed early bond redemptions amounting to 484 million NIS. Partner argued in court that with these bonds settled, the holders no longer qualified as company creditors.
Massive Returns for Controlling Shareholders
"There is no reasonable concern that the requested distribution will prevent the company from meeting its existing and expected obligations upon their due dates," Partner stated during the legal proceedings.
Neither the Tax Authority nor the Israel Securities Authority raised objections to the dividend payout. The primary beneficiary of the upcoming distribution will be the controlling shareholder group, Ampisa, which holds a 21.2% stake in Partner. The group includes Shlomo Rodav, Roni Gat, Mori Arkin, Phoenix Holdings, and Partner CEO Avi Gabay, whose share of the dividend will reach approximately 106 million NIS.
Ampisa acquired its controlling stake in Partner in April 2022 for 960 million NIS. Having resumed dividend distributions last year after more than a decade, the group has accumulated a total return of approximately 755 million NIS on its investment.
