Exphone communications was sold by businessman Hezi Bezalel to the Canadian Reichman family for NIS 330 million

Posted on Jun 15, 2021 by Ifi Reporter

The Exphone communications company, which operates the we4G cellular brand and the Internet and international calls company Exphone communications 018, was sold by businessman Hezi Bezalel to the Canadian Reichman family, the owner of the private Widely Mobile company, for NIS 330 million.
The purchase deal was revealed in the company's application to the court, in response to Cellcom's lawsuit against it, alleging a debt of NIS 60 million and as part of a request to delay proceedings for the company to reach a debt settlement. Exphone claimed in an application to the court that the sale is being carried out "in order to continue its obligations to customers and all suppliers," and that it intends to repay its full debts. The company has applied to the court for a restraining order against Cellcom, which will not allow it to torpedo the deal.
Exphone asked the court, as stated, for a stay of proceedings order for the purpose of formulating a debt settlement, after obtaining the consent of Mizrahi Tefahot Bank in the matter. The request states that "Cellcom began taking bullying, predatory and predatory legal action against the company during the period of the Corona epidemic, and imposed temporary foreclosures in the amount of NIS 34 million on banks and credit card companies. These proceedings were intended to end the company's activities. "Thus removing a significant competitor from the cellular market, while stealing most of its assets - 350,000 of the company's customers."
In its claims against Cellcom, Exphone stated that the acquisition of Golan Telecom by Cellcom changed the balance of power between them in the joint infrastructure company CMG, which is deploying the companies' cellular network, grossly violated the network sharing agreement between them and materially harmed Exphone. The company stated that in exchange for the sale, it would allow Bezalel to repay all of the company's past debts.
The buyers are members of the Canadian Reichman family, former owners of the Waldorf Astoria Hotel in Jerusalem and owners of Perry Telecom, which operates a virtual cellular operator (MVNO) in Israel. On behalf of the family, the announcement of the agreement stated that "taking the activity from this point and assimilating it into an advanced technological platform in the field of communications developed by us, will enable the fulfillment of the vision of both Hezi Bezalel and ours, in order to retain full Expon customers and continue the activity."
Hezi Bezalel sells Exphone for NIS 330 million to the Canadian Reichman family
The communications company that operates the we4G cellular brand and the Expon 018 company is being sold to the owner of the private company Widely Mobile, which previously also owned the Waldorf Astoria Hotel in Jerusalem. The deal was revealed in a response that Expon filed in court, to Cellcom's lawsuit against it, alleging a debt of about NIS 60 million, and as part of a request to delay proceedings for the company to reach a debt settlement.


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