Matav Cable Systems (Nasdaq:MATV) will become a holding company once the three cable companies are merged. TheMarker learned the merged company will not trade on the stock market under the name Matav, but will hold a future IPO under its new name, Gvanim.
The decision raises questions regarding the true intentions behind the Yes-Matav merger, which originally was to form a merged, publicly traded company.
Estimates of the cable companies were another advantage of the merger is it would save NIS 100 million, or 50% of the annual overhead costs.
It is now believed the merger will be approved and carried out in a matter of several weeks. The only hitch left is an agreement to be reached with Dror Strum, the Antitrust Commissioner, on a schedule for local telephony services and on his demand to sell some of the holdings in the merged content company.