Release Details

Supplementary Immediate Report – Court resolution in motion to dismiss charges in case regarding interested party transactions

July 21, 2022

Supplementary Immediate Report – Court resolution in motion to dismiss charges in case regarding interested party transactions

Further to the Company's immediate report dated December 23, 2020 regarding, inter alia, the indictment of former officers of the Group with respect to fraud cases involving payment of the consideration for purchase of shares of the subsidiary DBS Satellite Services (1998) Ltd. by the Company, and fraud involving conduct of the independent committees established by the Company to review interested party transactions of the Company; and description of this matter in section 1.1.6 of chapter "Description of Corporate Affairs" on the Company's 2021 annual report, the Company hereby provides an additional immediate report, whereby on July 20, 2022 the Economic Division of the Tel Aviv-Yafo District Court issued a resolution on the motion filed by some of the defendants to dismiss charges in the case ("the Resolution").

Pursuant to the  Resolution, charges 2 and 3 in the indictment (fraud regarding conduct of independent committees in Bezeq-yes transaction and in yes-Spacecom transaction) were dismissed against all defendants charged with these charges: The former controlling shareholder of the Company – Shaul Elovitch; former officers of the Company – Or Elovitch, Amikam Shorer and Linor Yochelman; and the companies charged with said charges – Eurocom Group companies. The Resolution further stipulates that the claim made by Shaul Elovitch may not be accepted, whereby the indictment reveals no culpability with regard to charge no. 1 (fraudulent receipt of advance payments on account of the second contingent consideration in Bezeq-yes transaction).

The Resolution further emphasizes that it has no implications whatsoever on the civil aspect and on pending proceedings in this context (note that multiple civil cases are pending against the Company and former officers thereof with regard to the transactions subject of the Resolution, as set forth in section 2.18.1 of chapter "Description of Corporate Affairs" in the Company's 2021 annual report).

 

The Company is studying the Resolution and implications thereof.

Yours sincerely,
“Bezeq” The Israel Telecommunication Corp Limited

 

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.

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