Intelsat transaction
The Tel Aviv Stock Exchange Ltd. The Israel Securities Authority
Immediate Report on an event or matter outside the normal course of business
Regulation 36 (a) of the Securities Regulations (Periodic and immediate reports), 5730-1970
Subject: Intelsat Transaction
1. As described in clause 6.6.11 to the company prospectus of 24.5.04, the Company has holdings in the Satellite Corporation Intelsat (“Intelsat”) that was privatized in 2001, after which each member became a shareholder according to their share of investment. The Company's stake in the Corporation is approximately 0.7405%. In addition, the company has a 0.8% holding in the subsidiary of the same corporation by the name of “New Skies Satellites”, N.V. (“NSS”).
Last night Intelsat notified the Company of the sale of the Corporation (“Intelsat transaction”) where the Company's share is valued at approximately USD 23 million.
As a result of the sale, the company expects to receive at the completion of the Intelsat transaction (expected at end of 2004 after receipt of approval of the transaction by law) its share valued at approximately USD 23 million. In addition, the Company received yesterday to its account the sum of approximately USD 8 million for its share in the activities, assets and commitments of NSS (the total return from both transactions is approximately USD 31 million).
As a result of the two transactions and pending the completion of the Intelsat transaction, the Company is expected to register a capital gain of the total sum due, of approximately NIS 136 million. The tax rate on the capital gain will be the usual Israeli tax rate on capital gains.
Disclaimer: The above information constitutes a translation of the Immediate Report published by the Company. The Hebrew version was submitted by the Company to the relevant authorities pursuant to Israeli law, and represents the binding version and the only one having legal effect. This translation was prepared for convenience purposes only.