Immediate Report - Agreement between yes and Partner Communications
Bezeq The Israeli Telecommunications Corp. Ltd.
(the “Company”)
July 9, 2024
Attn.
Israel Securities Authority
Tel Aviv Stock
Exchange Ltd.
Immediate report – Agreement between yes and Partner Communications Ltd.
Holon, Israel – July 9, 2024 – Bezeq The Israeli Telecommunications Corp., Limited (TASE: BEZQ), Israel’s leading telecommunications provider, announced today that the subsidiary yes Television and Communication Services Ltd. ("yes") entered into an agreement with Partner Communications Ltd. ("Partner"), according to which Partner will have the right to market to its subscribers an app for viewing audio-visual content, provided and supported by yes, based on the Sting+ service operated by yes (the "Service” and the “Agreement", respectively), with some changes set out in the Agreement. Under the Agreement, yes will be entitled to monthly payment of at least NIS 5.3 million (plus VAT) , based on the number of Partner subscribers to the Service, with the addition of linkage differences according to the terms set out in the Agreement.
Under the Agreement, yes and Partner will act to implement the commercial launch of the Service as early as possible and in any case within nine months after the Agreement is signed or six months after the Anti-Trust Authority approves the Agreement, whichever is later (the "Commercial Launch Date").
The term of the Agreement is five years after the Commercial Launch Date, and Partner has the right to extend the term of the Agreement for another year. Additionally, Partner has the right to terminate the Agreement prematurely, for any reason, with six months’ notice, which will not be given before 36 months have passed from the Commercial Launch Date. At the end of the term of Agreement (including the additional term, if exercised), Partner will have the right to continue providing the Service under the terms and conditions of the Agreement for a transitional period of no more than 18 months. The Company and yes believe that the Agreement is not expected to have a material contribution to the business activity of Bezeq Group.
The completion and implementation of the Agreement are subject to the fulfillment of preconditions, which include the approval of the Anti-Trust Authority and obtaining the approvals required for yes to comply with its obligations under the Agreement. As at the date of this immediate report, it is uncertain whether the Agreement will come into effect, taking into account the requirement for fulfillment of the preconditions.
The information set out in this immediate report regarding the Agreement, the Commercial Launch Date, and estimates of the contribution of the Agreement to the business activity of Bezeq Group is forward-looking information, as this term is defined in the Israel Securities Law, 1968, which may not materialize or may materialize in a way that is materially different than anticipated, depending, among other things, on the variables set out above, including due to factors beyond the control of yes, including the requirement for the approval of the Competition Authority and other approvals, and how the Agreement is implemented by the parties.
Yours sincerely,
Bezeq The Israeli Telecommunications Corp. Ltd.