Internet Gold-Golden Lines (IGLD) Stock: Here’s What’s Happening

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Internet Gold-Golden Lines IGLD Stock News

Internet Gold Golden Lines Ltd (NASDAQ: IGLD) is flying in the market this morning. However, if you’re digging for a press release issued today, you’re not going to find one. However, there’s a good reason for the gains and it’s related to a potential sale of the company’s core asset. Today, we’ll talk about:

  • Why IGLD stock is climbing;
  • what we’re seeing in the market; and
  • what we’ll be watching for ahead. 

IGLD May Sell Its Core Asset

As mentioned above, Internet Gold-Golden Lines is having a strong day in the market today. The company seems to be the center of asset sale news that’s exciting investors. 

According to various reports, Searchlight Capital Partners has made a bid to buy the company’s controlling stake in B Communications Ltd. B Communications is the largest shareholder in Bezeq Israeli Telecommunications. 

According to the reports, the offer to buy the asset came at a price of $105 million. 

B Communications was put up for sale in order to settle the debts of Eurocom, a company that took out massive loans to finance the takeover of Bezeq. 

With more about 600 million shekels in net bonds, IGLD has been struggling to make payments. However, the sale of the asset would pay off about 73% of these bonds, changing the game financially for the company. 

What We’re Seeing From the Stock 

One of the first lessons that we learn when we start to work in the market is that the news causes moves. In the case of Internet Gold-Golden Lines, the news proved to be positive. 

After all, if the company accepts the offer, it will help to put it on stronger financial footing. While the loss of the core asset would hurt, there are other assets that the company could focus on that could drive value. 

Considering this, it’s not surprising that investors are excited and pushing the stock up. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (12:04), IGLD is trading at $1.04 per share after a gain of $0.22 per share or 26.09% thus far today. 

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What We’ll be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on IGLD. In particular, we’re interested in following the story surrounding the potential sale of the company’s core asset. Nonetheless, we’ll follow the story closely and bring the news to you as it breaks!

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