Partner Communications Announces Bond Redemption to Clear Special Dividend
Partner Communications announces an early redemption of Series Z bonds worth NIS 344 million to pave the way for a controversial NIS 500 million special dividend.
Partner Communications is determined to distribute a special dividend of NIS 500 million, taking another step by announcing an early redemption for Series Z bonds totaling approximately NIS 344 million, scheduled for October 12.
The Battle Over Bondholder Approval
Under the leadership of CEO Avi Gabbay, Partner announced its intention to distribute the special dividend two months ago, financed through a NIS 750 million debt raising. Because the distribution was not from retained earnings, the company petitioned the court, giving creditors the right to object. Bondholder meetings failed to achieve the required two-thirds majority. Following an early redemption of Series H bonds, Partner sought approval from Series Z holders. Although a majority voted in favor, it fell short of the required threshold.
"The risk level for Series Z bondholders is zero, nothing... There was no reason for them not to vote in 'yes'," Gabbay stated during an investors' call.
Paving the Way for the Dividend
Following the failed vote, Partner decided to proceed with an early redemption of Series Z. This move paves the way for the special dividend distribution, pending court approval.
The primary beneficiary of this move is the control group Ampisa, holding 21.2% of Partner's shares. Ampisa comprises companies owned by Shlomo Rodav, Roni Gat, Mori Arkin, The Phoenix, and CEO Avi Gabbay. If approved, Ampisa's share of the dividend will reach approximately NIS 106 million, adding to substantial prior returns on their 2022 investment.
