BATM Advanced Communications Limited (LON:BVC) said it had entered into a memorandum of understanding with Cellcom Israel Ltd to acquire its stake in the Israel Electric Corporation (IBC) for US$3.2mln.
The telecoms and medical systems firm said the sale of its 7.5% interest in IBC would be subject to regulatory approval but was expected to occur in the first half of 2019.
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The agreement is part of a wider arrangement between Cellcom and a consortium including BATM that was established in 2013 to construct a new fibre optic network in Israel.
Dr Zvi Marom, chief executive of BATM, said: "We are pleased to have entered into this agreement with Cellcom, along with our consortium partners, which will generate additional value from this legacy asset. We look forward to seeing Cellcom and the Israel Electric Corporation progress the project and wish them all the best for the future."
In early morning trading Wednesday, BATM shares were up 0.2% at 41.1p.