UPDATE 1-Partner Communications to buy Ampal’s telecom unit

* Partner Comm to buy 012 Smile for $180 mln

* Ampal sees pre-tax gain

* Ampal shares up 24 pct

Oct 13 (BestGrowthStock) – Partner Communications (PTNR.TA: )
(PTNR.O: ), Israel’s second-largest mobile phone operator, said
it agreed to buy Ampal-American Israel Corp’s (AMPL.TA: )
(AMPL.O: ) unit 012 Smile Telecom for about $180 million to gain
a firmer foothold in the fixed-line telecom services industry.

Ampal’s shares rose 24 percent to $2.65 in afternoon trade,
after being halted earlier. The company invests in Israel-based
businesses.

012 Smile, held through Ampal-American’s subsidiary
Merhav-Ampal Energy, was bought by Ampal in November last year
for $318 million.

The deal also gives Merhav-Ampal Energy the right to
receive payments of about $11.6 million due to 012 Smile from a
third party.

Partner said it will assume about $222 million of 012
Smile’s debt.

In a separate release, Ampal said it expects to record a
pre-tax gain of about $85.7 million on the deal, which is
scheduled to close in two-three months.

Partner’s shares were mostly flat at $18.27 on Nasdaq. They
have lost almost a fourth of their value since their 2010 high
of $24.25 recorded in March.

Barring today’s gains, Ampal’s stock has fallen 43 percent
from its 2010 high of $3.06.
(Reporting by Sayantani Ghosh in Bangalore; Editing by Vyas
Mohan)

UPDATE 1-Partner Communications to buy Ampal’s telecom unit