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Cellcom Israel unveils restructuring plan

The board of Cellcom Israel Ltd. approved a restructuring plan for the Israeli telecommunications company in efforts to reduce costs and decrease its debt.

As part of the restructuring plan, Cellcom will cut its annual expenses by about 150 million Israeli shekels by reducing its workforce and landline wholesale access fees as well as its expenses and payments to suppliers.

Cellcom will also reduce capital expenditure to about 450 million shekels to 500 million shekels per year. The company plans to fully execute these goals by the end of 2020.

Additionally, the company plans to raise about 400 million shekels in capital. Cellcom will make open market repurchases of its debentures up to 150 million shekels to reduce debt, subject to market conditions.

"We believe that restructuring the company, in its operational, financial and reduction of net debt to EBITDA ratio will enable the company to participate in mergers, acquisitions and other opportunities that may present themselves in the telecommunications arena in the next few years," Chairman Ami Erel said in a Sept. 23 news release.

As of Sept. 22, US$1 was equal to 3.52 Israeli shekels.