Benzinga | Nov 16, 2020 05:45AM EST

Cellcom Israel Announced Sharing Network Partner Xfone Has Not Made Payment

Cellcom Israel Ltd. (NYSE:CEL) (TASE: CEL) (hereinafter: the "Company") announced today that its cellular sharing network partner, Marathon 018 Xfone Ltd., or Xfone, has not paid the monthly payment due October 31, 2020, under the sharing network agreement, or Debt.

The Company issued a demand for the immediate payment of the Debt to Xfone and intends to act diligently to exercise its rights under the agreement.

At this preliminary stage, the Company cannot assess the implications on the Company's results.

For additional details regarding the materiality of the network sharing agreement on the Company's results, see the Company's 2019 annual report on Form 20-F, dated March 23, 2020, under "Item 3. Risk Factors - Our network sharing agreements consideration constitute a significant portion of our revenues" and Item 4. Information on the Company B. Business Overview Networks and Infrastructure Network sharing agreements".