In October 2005, Saban Capital Group, Apax Partners and Arkin Communications Ltd. acquired from the State of Israel, as part of a privatization tender, control of Bezeq The Israel Telecommunication Corp., Ltd. (“Bezeq”) in a $1 billion leveraged transaction. The consortium acquired 30% of the Company and a four-year option to purchase an additional 10.7%. In addition, the consortium obtained a proxy for approximately 5% over certain periods.

Bezeq is the State of Israel’s incumbent telecommunications company, providing products and services for consumers and businesses.  In fixed-line telephony, Bezeq provides local wireline access, data and transmission services, as well as broadband internet access (DSL).  Bezeq’s mobile subsidiary, Pelephone, offers wireless/cellular voice services and products.  The Company’s pay-TV platform, YES, offers satellite multi-channel television, while Bezeq Beinleumi provides international wireline and data access, as well as dial-up and broadband internet services (ISP).