Cellcom Israel says Koor to transfer 5% to Israeli shareholders

Cellcom Israel said that following amendments to GSM licence in relation to the requirement that Israeli citizens and residents from among the company's founding shareholders hold at least 5 percent of its outstanding shares and other means of control as of 31 January, controlling shareholder Koor Industries has signed a term sheet for the fulfillment of the requirement, having received the Ministry of Communications (MOC)'s approval.

Koor will transfer, through a lending transaction, 5 percent of the company's outstanding share capital to two sole purpose companies (2.5% apiece), each wholly owned by an Israeli shareholder. One of them,  Mauricio Wior, is the vice chairman of the company and the other one is an officer in a company controlled by its controlling shareholder. The agreement will be in force until 31 December and will be automatically extended by one year until terminated. Koor will have the right to terminate the agreement at any time and receive all or part of the transferred shares. 

The Israeli shareholders will not be able to transfer those shares without Koor's approval and subject to additional terms, including the transferees assuming the Israeli shareholder's obligation towards Koor under the agreement, the transferees being Israeli Shareholders under the company's mobile licence and the MOC's prior approval for such transfer, if required.

The transferred shares, including all rights or income therefrom, will be pledged by a first-degree pledge in favour of Koor, and any realisation of the pledge will be subject to the receipt of the MOC's approval, if required. In case of any dividend or other distribution, including a rights offering, these will be transferred by the Israeli shareholders to Koor.