Communications Ministry Director General Ori Olenik on Wednesday sent a letter to the ministerial privatization committee asking that Bezeq be allowed to inject another $40 million into satellite TV company YES.
Olenik said it is important to maintain competition in the sector and raised serious doubts about YES's financial strength without additional capital.
Yesterday, Bezeq CEO Shlomo Liran told TheMarker that YES has financial problems, and that a difficult time lies ahead.
Bezeq owns almost 50% of YES, and has recently filed a request with the state to increase its exposure by $40 million to $240 million, which would increase its stake to 49.9%. If Bezeq's stake in YES increases beyond 50%, YES becomes a government company by definition.
Liran said he relies on Bezeq injecting funds. He added that there could be problems if the ministerial committee does not approve Bezeq's request. He said that given that everyone understands the situation in YES, Bezeq's threshold stake in YES will probably be resolved.
The banks have recently requested clarifications from YES about shrinking average revenue per user, and missed targets.