NETANYA, Israel, Nov. 27, 2016 /PRNewswire/ -- Cellcom
Israel Ltd. (NYSE: CEL) (TASE: CEL) (the "Company") announces that the Company provides this report at the request of its
controlling shareholder, IDB Development Corporation Ltd., or IDB, in connection with certain debt issuance contemplated by
IDB.
Following previous reports, the Company is in advanced stages of negotiations for a possible network sharing agreement (which
will also resolve past national roaming payment differences with Golan Telecom Ltd., or Golan) with a third party interested in
purchasing Golan Telecom Ltd., or Golan. Such negotiations maturing into an agreement is further dependent on such third party
and Golan reaching an agreement as to the purchase of Golan as well as Golan and the Company reaching certain agreements as to
the parties' existing Share Purchase Agreement, or SPA and National Roaming Agreement, which may also include interim
arrangements. Any such Company's agreements will be subject to the completion of negotiations to the Company's satisfaction, the
approval of the Company's board of directors, the acquisition of Golan by such third party and the receipt of all regulatory
approvals for the purchase and network sharing agreements. The Company cannot estimate the timing and results of any of the
abovementioned negotiations, whether and when such negotiations shall mature into agreements and whether such agreements shall be
approved by the regulators.
Further, following previous reports regarding Golan's failure to pay the Company all due amounts for national roaming services
and asking the court to declare it does not owe the Company the previously reported past national roaming payment differences,
Golan rejected the Company's demand it pays the NIS 600 million on December
3, 2016, according to the SPA. In case such failures are not resolved shortly to the Company's satisfaction, the Company
will continue the legal proceedings already commenced against Golan and may take additional measures, including filing a
liquidation request against Golan. The Company cannot estimate the timing of such legal proceedings, what the decision in such
proceedings will be, or their impact on the Company's ability to collect amounts owed by Golan or to generate future revenues
from Golan. As previously reported, a substantial reduction of the future revenues from Golan will have a material adverse effect
on the Company's revenues and results of operations.
For additional details see the Company's 2015 Annual Report under "Item 3 Key Information - D. Risk Factors– Risks Related to
our Business –We face intense competition in all aspects of our business" and "- Risks Related to the Proposed Acquisition of
Golan Telecom Ltd." and under "Item 4. Information on the Company – B. Business Overview - General - Agreement for the Purchase
of Golan", and under "-Competition – Cellular" and " - Government Regulation –Additional MNOs", and the Company's current reports
on Form 6-K dated August 10, 2016 under "Other developments during the second quarter of 2016 and
subsequent to the end of the reporting period – Golan Telecom", September 6, 12, 21 and 22, 2016,
October 10, and November 14, 2016 under "Other developments during
the third quarter of 2016 and subsequent to the end of the reporting period – Golan Telecom".
About Cellcom Israel
Cellcom Israel Ltd., established in 1994, is the largest Israeli cellular provider; Cellcom Israel provides its approximately
2.822 million cellular subscribers (as at September 30, 2016) with a broad range of value added
services including cellular 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 LTE 4 generation network and an HSPA 3.5 Generation network
enabling advanced high speed broadband multimedia services, in addition to GSM/GPRS/EDGE 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 technical support, account information, direct to the door parcel delivery services, internet and fax
services, dedicated centers for hearing impaired, etc. Cellcom Israel further provides OTT TV services (as of December 2014), internet infrastructure (as of February 2015) and connectivity
services and international calling services, as well as 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.cellcom.co.il/
Company Contact
Shlomi Fruhling
Chief Financial Officer
investors@cellcom.co.il
Tel: +972 52 998 9755
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Investor Relations Contact
Ehud Helft
GK Investor & Public Relations In partnership with LHA
cellcom@GKIR.com
Tel: +1 617 418 3096
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SOURCE Cellcom Israel Ltd.