The controlling shareholders of Bezeq, the Israeli telecom provider, definitively agreed Sunday to sell their 30.6 percent stake to Smile Communications Ltd. for 8 shekels (US$2.17) a share, or 6.5 billion shekels (US$1.76 billion). Smile, an Israeli provider of telephone and Internet services, is owned 75.3 percent by Internet Gold-Golden Lines, the Israeli communications group. Both are members of investor Shaul Elovitch's closely held investment company, Eurocom, which among other interests imports Nokia handsets into Israel.

Bezeq, founded in 1984, formerly was the country's monopoly telephone-services carrier. Bezeq provides fixed-line and Pelephone-brand cellular service, long-distance-telecom service, as well as Yes satellite-television services. Smile is buying the stake from a group including Apax Partners, the entertainment investor Haim Saban, and Mori Arkin, former principal shareholder of Israeli drugmaker Agis until it was purchased by Perrigo in 2005. The Apax-Saban-Arkin group bought control of Bezeq in October 2005 from the government.

The deal price is 7 percent below Bezeq's closing market price last Thursday of 8.6 shekels a share. Directors of Smile have approved the terms of the deal, which is subject to conditions including clearances from Israel's Ministry of Communications, Antitrust Authority, and prime minister. Smile Chief Executive Stella Handler said in a statement the deal would further the company's effort to become the country's top integrated telecom player.