Israeli cable TV's complete merger.

A merger between Israel's three cable operators--Matav Cable Systems Media Ltd., Tevel and Golden Channels--is nearly complete. The merger agreement covers both television broadcasting and communications services provided via the cable network.

Two years ago, the programming departments of the three main cable operators merged their operations into a joint company called HOT. Now, the rest of the activities have been merged. The core company is Matav, which is dual-listed in Tel Aviv and Wall Street. Matav will buy out all operations of the other two companies, including assets and debts. The proportion of Matav that each merged-company shareholder will own will depend on the proportion of subsidiaries belonging to each company.

The final stage in the merger followed the signing of a financing agreement with four Israeli banks. Under the credit agreement, the combined cable companies will receive just under $1 billion, which will be divided into a number of arrangements, and will replace the current separate credit arrangements for each company. Three-quarters of the credit is designated for financing the company's investments. Part of this credit was already made available during 2006.

The merged company will carry a debt for the equivalent of $850 per subscriber, and the merger will be carried out at a value of $1,350 per subscriber.

CEO David Kaminitz said, "This agreement is a vote of confidence by the banks and shareholders in the merged company that will enable us to continue the company's growth momentum while streamlining."