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B Communication Capital/Financing Update 2016
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Capital/Financing Update
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בע"מ ף יוניקיישנס ("החברה") תשקיף מדף בי קומי ) ת
ת ה ם ת החברה"), אגרותב הניתנות להמרהי אופציה הניתניםם (להלן: "ניירותוק ניירות ערך") ה (להלן: "מניות לעת), אגרות חוב ומעת לעת), כתבי רות ערך מסחריי שתהיינה מעת ל ה, ככל שתהיינה, מניות החברה ונייר ת הדין - מניות ר של החברה, כפי רה למניות החברה יתנות להמרה למ בהתאם להוראות של אגרות חוב וב הניתנות להמר ולאגרות חוב הני ירות ערך שונים, ת סדרות קיימות מות של אגרות חו מוש לאגרות חוב ה להנפיק סוגי ניי בדרך של הרחבת רחבת סדרות קיימ ציה הניתנים למימ זה, תוכל החברה להמרה (לרבות ב בות בדרך של הר חברה, כתבי אופצ כוח תשקיף מדף וב שאינן ניתנות מניות החברה (לר מימוש למניות הח ערך"). מכ חו למ למ הע
, ם מ 1968- (להלן: "ח עת מדף, בהם יוש רסה לניירות ערך ת ערך, התשכ"ח- צעות דוחות הצע ן ולהנחיות הבור ף"). א(ו) לחוק ניירות עת מדף"), באמצ ובהתאם לתקנון "דוח הצעת המד הוראות סעיף 23 הלן: "תקנות הצע להוראות כל דין ראו לעיל ולהלן: יעשה בהתאם לה תשס"ו2005- (לה וצעות, בהתאם ל הדוחות הללו יקר שקיף מדף זה, תי ל ניירות ערך), ה רכב היחידות המ תה עת (כל אחד מ הערך על-פי תש ך (הצעת מדף של הצעה לרבות הר , כפי שיהיו באות צעתם של ניירות תקנות ניירות ערך מיוחדים לאותה הלן: "הבורסה") הצ ות המ (לה
רה: להשפיע על החבר ם שיש בהם כדי ל הסיכון העיקריים הלן תמצית גורמי לה
שלמו כל הפרטיםבתל-אביב בע" (Senior Secure כס הבסיס של ת ובטכנולוגיית וד בפני קשיים יכולת הכיסוי, עותיות במקרה משתנה, באופן ת לסיכוני שוק, אופן אשר עלול לענף התקשורת ד רשויות המס רים המזומנים שפיע לרעה על יבות מסוימות, ידנדים שתקבל לצרכן בישראל ראש הממשלה בלות מסוימות קי והפיננסי; .5 חברת האם של וכן לפרוע ו/או יכולה להמשיך רוקום, עשויים עילותן של בזק . רה ומהווה את נכ בסביבת התחרות ת בזק עשויה לעמ העשוי להרע את ם בעלויות משמע יוד ובטכנולוגיה מ בוצת בזק חשופות יצומי עובדים, בא חסמי הכניסה ל ; .9 החלטות מצד בוצת בזק ועל תזר , דבר העלול להש , אשר עשוי, בנסי ק ומסכום הדיבי במדד המחירים ל הוענק להן על ידי השליטה בה, מגב עה במצבה העסק קווי זהב בע"מ (ח בתל-אביב בע"מ ו לות החברה ועל י חרות בקבוצת יור ם הקשורים בפע חברות הקבוצהרגילות של החברה ה בשליטת החבר ינויים אפשריים פיננסי; .2 קבוצת רשת שלה, באופן ים להיות כרוכים ת בתשתיות, בצי ת פעילותה של קב להיות חשופה לעי ות פעולותיה; .8 השנים האחרונות ת פעילותה של קב לאומיות בישראל וב בהיקף מהותי דיבידנדים של בז חליפין, שינויים ב השליטה" אשר ה על החברה ובעלי תוך אפשרות להרע ו אינטרנט גולד-ק סה לניירות ערך ב פן מהותי על פעיל ט זהב וחברות אח ה- SEC ;סיכונים ל מחיר המניה של ("בזק"), המצויה כו לאחרונה או ש תה ועל מצבה הפ פעול של אתרי הר טיים, אשר עשוי ת הוניות מהותיו הותי; .6 תוצאות בוצת בזק עשויה ל הכספי ועל תוצאו ופן ניכר במהלך ה לרעה על תוצאות תקופות חירום ל רה: .1 לחברה חו מדיניות חלוקת הד תנודות בשערי הח ות לתנאי "היתר השליטה מחיל ע ה לשלוט בבזק ת יות"), החברה או מן המסחר בבורס שוי להשפיע באופ לפעילות אינטרנ סת הנאסד"ק וה בוצה ולהשפיע על לתקשורת בע"מ ( ת, שינויים שנערכ על תוצאות פעילו רך ההקמה והתפ של הליכים משפט דורשים השקעות יקוח רגולטורי מה אל ובעולם; .7 קב בזק, על מצבה ה בזק, צומצמו באו ע באופן מהותי ל עילותה במהלך ת בעסקיה של החבר היות מושפעת ממ מהותיים, כגון ת צת יורוקום כפופו השליטה"). היתר כולתה של החברה 20 ("חוק הריכוז ק את מניותיהן מ ידה בתנאי זה עש של החברה ביחס מקיפה מצד בורס פגוע בפעילות הקב רה הישראלית ל ת שירותי תקשורת של קבוצת בזק, ע ים הנדרשים לצור צויות בעיצומם ש עלת קבוצת בזק ת בזק חשופה לפי ווקי ההון בישרא קיה של קבוצת ב ותה של קבוצת ב ת עלולים להשפי וטלו על ביצוע פע שורים במישרין ב החברה עלולה לה חשופה לסיכונים רות אחרות בקבוצ צת בזק ("היתר ה שליטה ולפגוע ביכ ות, התשע"ד–013 מבר 2019 למחוק ה פרטית. אי עמי מישורי הפעילות ש כפופה לרגולציה מ בישראל עשויה לפ קבוצת בזק החב אחרות המציעות על מצב עסקיה ש יתרים הסביבתיי ת בקבוצת בזק מ השווקים בהם פוע קבוצה; .5 קבוצת ציה, וכן למצב שו פיע לרעה על עס ים נוספים בפעיל כללים או פרשנות ופה למגבלות שיו ור; סיכונים הקש ברה; .2 פעילות ה תה של החברה ח ת האם שלה וחבר ת השליטה בקבוצ ם לביטול היתר הש לצמצום הריכוזי ת, עד לחודש דצמ /או להפוך לחברה יינים הכרוכים במ פעילות החברה כ כלכלית וצבאית ב ים בעסקיה של ק ות מצד ספקיות א ם להשפיע לרעה יתרי הבנייה וההי שלהם; .3 חברות פסוק כנגדן; .4 ה יע על תוצאות הק ערי מטבע, אינפלצ בפעילותה ולהשפ בישראל ולתחומי נות מס, חוקים, כ עלולה להיות כפופ יות במקרה כאמו ת המימון של החב .3 תוצאות פעילות .4 החברה, חברת בקשר עם רכישת בהן עשויה לגרום קידום התחרות ול נט זהב") נדרשות שהונפק לציבור ו . סיכוני ניגוד עני לות החברה; .7 פ ציבות פוליטית, כ סיכונים הקשורי החברה: .1 תחרו התקשורת עלולים בהשגת חלק מהי האיכות והנפח ש שבית המשפט יפ אשר עשוי להשפי כגון תנודות בשע לגרום להפרעות הקווית הביתית ב או שינויים באמנ שלה; .10 בזק ע פעולותיה העסקי להגביל את יכולת החברה מבזק; 3 ובשערי הריבית; ושר התקשורת, ב אשר אי עמידה ב בהתאם לחוק לק החברה, "אינטרנ למחוק כל חוב ש ולשלוט בבזק; 6 להשפיע על פעיל והחברה: .1 אי יצ
תשקיף. ראה סעיף 3.4 לת לפרטים נוספים ר
דולרית - 2021 ed ל החברה (סדרה ד Sta/מעלות. הבינלאומיות של andard & Poor's "מ. אגרות החוב ישראלי) על ידי sל ידי "מדרוג" בע ודירוג +A) דירוג מדורגות 3Aa על (דירוג בינלאומי) ו ה ב') של החברה BB באופק יציב (ד אגרות החוב (סדר מדורגות בדירוג -B א מ
") תחת הסימול להלן: "Nasdaq תקנו מכוחו. ל (Nasdaq Globa ך והתקנות שהות al Select Marke 3 לחוק ניירות ערך "בקום" וכן ב- et כפול לפי פרק ה'3 סה תחת הסימול אות בדבר רישום כ מות למסחר בבורס רישום מכוח הורא של החברה רשומ בהתאם למסמך ר מניותיה הרגילות ש BCOM", וזאת ב מ " תשקיף מדף זה נערך ודוחות המדף שיפורסמו על- פי התשקיף ייערכו, בהתאם לפטור מתקנות ניירות ערך (פרטי התשקיף וטיוטת תשקיף - מבנה וצורה), תשכ"ט- 1969 (להלן: "תקנות פרטי תשקיף"), שניתן לחברה על-ידי רשות ניירות ערך מכוח סעיף 35כט' לחוק ניירות ערך. לפרטים ראו סעיף 1.3 לתשקיף מדף זה. דוח הצעת מדף שתפרסם החברה על-פי תשקיף מדף זה יכלול (במסגרת הדוח או על דרך ההפניה) מידע משלים לגבי התפתחויות מהותיות בחברה ממועד תשקיף מדף זה וכן מידע משלים נוסף, אם וככל שהיה נדרש לפי ה- 1933 of Act Securities States United כפי שתוקן מעת לעת (להלן: ״Act Securities״) והכללים והתקנות של רשות ניירות ערך האמריקאית, אם הצעת ניירות ערך כאמור היתה מוגשת לרישום לפי ה- Act Securities במסמך רישום -3F Form, לרבות מידע כספי מעודכן בהתבסס על דרישות כללי רשות ניירות ערך האמריקאית בסעיף 8 של F20- Form, אם וככל הנדרש, וזאת בנוסף לפרטים הדרושים על-פי תקנות הצעת מדף (ובכללם פרטים אודות ניירות הערך המוצעים וכל פרט אחר הטעון תיאור על-פי אותן תקנות). לפרטים ראו סעיף 1.3 לתשקיף מדף זה.
הדיווחים השוטפים של החברה הינם על-פי הדין בארה"ב ובשפה האנגלית, בהתאם לכללי הרישום הכפול הקבועים בפרק ה'3 לחוק ניירות ערך והתקנות שהותקנו מכוחו.
הצעת ניירות ערך במסגרת דוחות הצעת מדף על- פי תשקיף מדף זה תיעשה בישראל בלבד ולא תיעשה בארה"ב ו/או לאדם הנמצא בארה"ב ו/או ל- .S.U Persons כהגדרתם ב- S Regulation שהותקנה מכוח ה- Act Securities) להלן: "S Regulation(". על- פי דרישת הבורסה, הצעת ניירות ערך על-פי דוחות הצעת מדף על-פי תשקיף מדף זה תהיה מותנית בעמידת החברה בפטור מדרישות הרישום על-פי 1 Category של S Regulation ביחס לניירות הערך שיוצעו על- ידי החברה כאמור, על-פי חוות דעת עורך דין זר של החברה שתוגש לבורסה קודם למועד פרסומו של דוח הצעת המדף על-ידי החברה, לפיה אין מניעה לחברה להציע לציבור בישראל את ניירות הערך שיוצעו בדוח הצעת המדף, לרשום אותם למסחר בבורסה, לקיים בהם מסחר ולסולקם במסלקת הבורסה, הכל כמפורט בסעיף 1.2.3 לתשקיף. על אף האמור לעיל, לפי נסיבות העניין, תיתכן הצעת ניירות ערך במסגרת דוח הצעת מדף על-פי תשקיף מדף זה, אשר לא תהיה מוגבלת לתושבי ישראל בלבד, או תיתכן שתעמוד החברה בפטור מדרישות הרישום על-פי 2 Category של S Regulation, בכפוף לחוות הדעת של עורך הדין הזר של החברה כאמור לעיל, והכל כפי שיפורט בדוח הצעת המדף.
כל רוכש של ניירות הערך שיוצעו על-פי דוח הצעת מדף שיפורסם על-פי תשקיף מדף זה: (1) ייחשב כמי שהצהיר כי הוא תושב ישראל, כי הוא זכאי לרכוש את ניירות הערך המוצעים בהתאם לפטור מדרישות הרישום לפי ה – Act Securities ;או (2) ייחשב כמי שהצהיר: (i (כי אינו נמצא בארה"ב וכי אינו .S.U Person או לחילופין, כי הוא תושב ישראל וכי אינו Person .S.U) ;ii (כי אינו רוכש את ניירות הערך שיוצעו בדוח הצעת מדף כאמור עבור או לטובת .S.U Person ו/או אדם הנמצא בארה"ב; (iii (כי לא היה בארה"ב בעת שהגיש בקשה לרכוש ובעת שרכש את ניירות הערך שיוצעו בדוח הצעת מדף כאמור ; ו- (iv (כי אינו רוכש את ניירות הערך שיוצעו בדוח הצעת מדף כאמור עם כוונה לבצע "distribution "של ניירות הערך האמורים בארה"ב (כמשמעו של מונח זה בדיני ניירות ערך האמריקאיים), הכל כפי שיפורט בדוח הצעת המדף. המפיצים עימם תתקשר החברה, ככל שתתקשר, להפצת ניירות הערך המוצעים, חברות קשורות שלהם וכל מי שפועל מטעמם, יצהירו כי יציעו את ניירות הערך המוצעים רק לתושבי ישראל ולא לכל אדם הנמצא בארה"ב או מי שהינו Person S.U, למעט בהתאם לפטור מדרישות רישום לפי ה- Act Securities או במסגרת עסקה שאיננה כפופה לדרישות הרישום האמורות, וכי לא ביצעו ולא יבצעו כל פעולה או פרסום בארה"ב בקשר עם קידום מכירתם של ניירות הערך המוצעים. על אף האמור לעיל, לפי נסיבות העניין, תיתכן הצעת ניירות ערך במסגרת דוח הצעת מדף על- פי תשקיף מדף זה, אשר לא תהיה מוגבלת לתושבי ישראל בלבד ולכן לא ייחשב כל רוכש של ניירות הערך שיוצעו על-פי דוח הצעת מדף כאמור כמי שהצהיר כי הוא אינו תושב ישראל, הכל כפי שיפורט בדוח הצעת המדף.
תשקיף מדף זה ודוחות הצעת מדף על-פיו אינם מיועדים לפרסום, הפצה ו/או חלוקה בארה"ב ו/או ל- Persons .S.U כהגדרתם ב- S Regulation, אף אדם אינו מוסמך לפעול למכירת ניירות הערך שיוצעו על-פי התשקיף ודוחות הצעת מדף שיפורסמו על-פיו בארה"ב וניירות ערך שיוצעו על- פי דוחות הצעת המדף האמורים לא יוצעו או יימכרו בארה"ב ללא רישום או פטור מרישום בארה"ב. תשקיף מדף זה לא הוגש לרשות לניירות ערך בארה"ב ודוחות הצעת המדף שיפורסמו על-פיו לא יוגשו לרשות לניירות ערך בארה"ב. בכפוף לאמור להלן, ניירות הערך שיוצעו על-פי התשקיף ודוחות הצעת המדף על-פיו יכול ולא יירשמו בהתאם ל- Act Securities בארה"ב ואסור לבעלי ניירות הערך שיוצעו על-פי התשקיף ודוחות הצעת המדף על-פיו להציעם ו/או למוכרם ו/או לשעבדם או להעבירם בדרך אחרת בארה"ב ו/או ל- Person .S.U, אלא אם יירשמו בהתאם ל S Regulation, על-פי מסמך רישום לפי ה- Act Securities או אם קיים פטור מדרישת הרישום בהתאם ל- Act Securities. בכפוף לאמור להלן, ואלא אם יצוין אחרת בדוח הצעת המדף, החברה אינה מתחייבת לרשום את ניירות הערך למסחר בארה"ב בהתאם ל- Act Securities. בסמוך לרישום למסחר של ניירות ערך שיוצעו על- פי דוח הצעת מדף שיפורסם על-פי תשקיף מדף זה, ובכפוף להוראות הדין שיחולו באותו מועד, תרשום החברה למסחר את המניות הרגילות שיוצעו בדוח הצעת מדף על-פי תשקיף מדף זה או את המניות הרגילות שעשויות לנבוע כתוצאה מהמרת ניירות הערך שיוצעו כאמור, לפני העניין, בבורסת Nasdaq ורוכשי ניירות הערך האמורים יהיו רשאים למכרן ב- Nasdaq בעסקאות רגילות, כפוף למגבלות על-פי הדין האמריקאי.
על תשקיף מדף זה ודוחות הצעת מדף שיפורסמו על-פיו ועל הצעת ניירות הערך ורכישתם על-פיהם וכל הנובע ו/או הקשור בתשקיף מדף זה ובדוחות הצעת המדף שיפורסמו על-פיו, יחולו דיני מדינת ישראל בלבד, ולא יחולו דינים אחרים כלשהם, וסמכות השיפוט הבלעדית בכל עניין הקשור לעניינים האמורים מוקנית אך ורק לבתי המשפט המוסמכים בישראל ולהם בלבד, והניצעים בהסכמתם לרכוש את ניירות הערך שיוצעו על-פי תשקיף מדף זה ודוחות הצעת המדף על-פיהם מקבלים על עצמם סמכות שיפוט בלעדית זו וברירת דין זו.
רכישת ניירות ערך שיוצעו על-פי דוח הצעת מדף שיפורסם על-פי תשקיף מדף זה תהיה כפופה להגבלות על מכירה חוזרת בהתאם לסעיף 904 ל- S Regulation, כפי שיפורט בדוחות הצעת מדף שיפורסמו על-פי תשקיף מדף זה. החלטה לרכוש את ניירות הערך שיוצעו על-פי תשקיף מדף זה ועל- פי דוחות הצעת מדף שיפורסמו מכוחו, יש לקבל אך ורק בהסתמך על המידע הנכלל (לרבות בדרך של הפניה) בתשקיף מדף זה ובדוחות הצעת המדף על-פיו. החברה לא התירה לכל אדם או גוף אחר כלשהו למסור מידע שונה מזה המפורט בתשקיף מדף זה. תשקיף מדף זה ודוחות הצעת המדף על-פיו אינם מהווים הצעה של ניירות ערך בכל מדינה אחרת למעט מדינת ישראל.
אם החברה תציע לראשונה בדוח הצעת מדף אגרות חוב ו/או ניירות ערך מסחריים, ואם אגרות החוב ו/או ניירות הערך המסחריים הנ"ל ידורגו, על-ידי חברה מדרגת (לפי שיקול דעתה הבלעדי של החברה), אזי תפרסם החברה את דוח הדירוג או את העדכון לדוח הדירוג, לפי העניין, שלושה (3) ימים לפחות לפני פרסום דוח הצעת המדף וכן תצרף את דוח הדירוג לדוח הצעת המדף ואת הסכמת חברת הדירוג לצירופו כאמור.
בכפוף להוראות כל דין, ובכפוף להנחיות והוראות הבורסה, כפי שתהיינה בכל עת, מובהר כי החברה תהיה רשאית להנפיק את ניירות הערך המוצעים בכל הרכב ובכל כמות כפי שיקבעו על-ידה.
Item 5: "Operating and Financial Review and Prospects - B. Liquidity and Capital ראה לפרטים .בה עניין בעלי עם לעסקאות צד הינה החברה "Resources ו- "Transactions Party Related and Shareholders Major "7: Item, בביאור 31 לדוחות הכספיים של החברה לשנת 2015 שפורסמו במגנא ביום 20.4.2016 (מספר אסמכתא: 2016-02-052441).
עותק מתשקיף זה עומד לעיון הציבור באתר האינטרנט של רשות ניירות ערך שכתובתו il.gov.isa.magna.www ובאתר הבורסה שכתובתו: .maya.tase.co.il
תאריך התשקיף: 29.8.2016
תוכן העניינים
| א- 1 | מבוא | פרק :1 |
|---|---|---|
| א- 1 | כללי | 1.1 |
| א- 1 | אישורים היתרים ו |
1.2 |
| א- 3 | רך ת ניירות ע פטור רשו |
1.3 |
| ב1- | בור הערך לצי ת ניירות פרטי הצע |
פרק :2 |
| CHAPTER 3 |
פרק :3 | |
| General | 3.1 | |
| Forward-Looking Statements | 3.2 | |
| Summary Information Regarding the Company | 3.3 | |
| Risk Factors | 3.4 | |
| Offer Statistics and Expected Timetable | 3.5 | |
| Ratio of Earnings to Fixed Charges | 3.6 | |
| Use of Proceeds | 3.7 | |
| Capitalization and Indebtedness | 3.8 | |
| Description of Securities | 3.9 | |
| Markets | 3.10 | |
| Plan of Distribution | 3.11 | |
| Expenses | 3.12 | |
| Where You Can Find More Information | 3.13 | |
| Incorporation of Certain Information by Reference | 3.14 | |
| Indemnification of Directors and Officers | 3.15 | |
| Legal Matters | 3.16 | |
| Experts | 3.17 | |
| Enforceability Of Civil Liabilities | 3.18 | |
| ות החברה נלוות למני הזכויות ה |
פרק :4 | |
| ה1- | עודה הנפקה ויי תמורת ה |
פרק :5 |
| ו1- | ספים פרטים נו |
פרק :6 |
| ו1- | עורך דין חוות דעת |
6.1 |
| ו2- | ון ואי החשב כמה של ר מכתב הס |
6.2 |
| ו3- | ף סום תשקי היתר לפר שה למתן אגרת בק |
6.3 |
| ו3- | כים עיון במסמ |
6.4 |
| ז1- | חתימות | פרק :7 |
הצעת ניירות ערך לפי דוחות הצעת מדף שיפורסמו על-פי תשקיף מדף זה תיעשה בישראל בלבד ולא תיעשה בארה"ב ו/או ל- Persons .S.U כהגדרתם ב- S Regulation שהותקנה מכח ה- Act Securities. על- פי דרישת הבורסה, הצעת ניירות ערך על-פי דוחות הצעת מדף על- פי תשקיף מדף זה תהיה מותנית בעמידת החברה בפטור מדרישות הרישום על- פי 1 Category של Regulation S ביחס לניירות הערך שיוצעו על-ידי החברה כאמור, על- פי חוות דעת של עורך דין זר של החברה שתוגש לבורסה שתיערך קודם למועד פרסומו של דוח הצעת המדף על- ידי החברה, לפיה אין מניעה לחברה להציע לציבור בישראל את ניירות הערך שיוצעו בדוח הצעת המדף, לרשום אותם למסחר בבורסה, לקיים בהם מסחר ולסולקם במסלקת הבורסה. על אף האמור לעיל, לפי נסיבות העניין, תיתכן הצעת ניירות ערך במסגרת דוח הצעת מדף על-פי תשקיף מדף זה, אשר לא תהיה מוגבלת לתושבי ישראל בלבד, או תיתכן שתעמוד החברה בפטור מדרישות הרישום על-פי 2 Category של S Regulation, בכפוף לחוות הדעת של עורך הדין הזר של החברה המפורטת לעיל, הכל כפי שיפורט בדוח הצעת המדף.
כל רוכש של ניירות הערך שיוצעו על- פי דוח הצעת מדף שיפורסם על-פי תשקיף מדף זה (1) ייחשב כמי שהצהיר כי הוא תושב ישראל, כי הוא זכאי לרכוש את ניירות הערך המוצעים בהתאם לפטור מדרישות הרישום לפי ה- Act Securities ;או (2) ייחשב כמי שהצהיר (i (כי אינו נמצא בארה"ב וכי אינו Person .S.U, או לחילופין כי הוא תושב ישראל וכי אינו Person .S.U) ;ii (כי אינו רוכש את ניירות הערך שיוצעו בדוח הצעת מדף כאמור עבור או לטובת Person .S.U ו/או אדם הנמצא בארה"ב; (iii (כי לא היה בארה"ב בעת שהגיש בקשה לרכוש ובעת שרכש את ניירות הערך שיוצעו בדוח הצעת מדף כאמור; ו- (iv (כי אינו רוכש את ניירות הערך שיוצעו בדוח הצעת מדף כאמור עם כוונה לבצע "distribution "של ניירות הערך האמורים בארה"ב (כמשמעו של מונח זה בדיני ניירות ערך האמריקאיים). המפיצים עימם תתקשר החברה, ככל שתתקשר, להפצת ניירות הערך המוצעים, חברות קשורות שלהם וכל מי שפועל מטעמם, יצהירו כי יציעו את ניירות הערך המוצעים רק לתושבי ישראל ולא לכל אדם הנמצא בארה"ב או מי שהינו Person S.U, למעט בהתאם לפטור מדרישות רישום לפי ה- Act Securities או במסגרת עסקה שאיננה כפופה לדרישות הרישום האמורות, וכי לא ביצעו ולא יבצעו כל פעולה או פרסום בארה"ב בקשר עם קידום מכירתם של ניירות הערך המוצעים. על אף האמור לעיל, לפי נסיבות העניין, תיתכן הצעת ניירות ערך במסגרת דוח הצעת מדף על- פי תשקיף מדף זה, אשר לא תהיה מוגבלת לתושבי ישראל בלבד ולכן לא ייחשב כל רוכש של ניירות הערך שיוצעו על-פי דוח הצעת מדף כאמור כמי שהצהיר כי הוא אינו תושב ישראל, הכל כפי שיפורט בדוח הצעת המדף.
על תשקיף מדף זה ודוחות הצעת מדף שיפורסמו על-פיו ועל הצעת ניירות הערך ורכישתם על- פיהם וכל הנובע ו/או הקשור בתשקיף מדף זה ובדוחות הצעת המדף שיפורסמו על- פיו, יחולו דיני מדינת ישראל בלבד ולא יחולו דינים אחרים כלשהם, וסמכות השיפוט הבלעדית בכל עניין הקשור לעניינים האמורים מוקנית אך ורק לבתי המשפט המוסמכים בישראל ולהם בלבד, והניצעים בהסכמתם לרכוש את ניירות הערך שיוצעו על-פי תשקיף מדף זה ודוחות הצעת המדף על-פיו מקבלים על עצמם סמכות שיפוט בלעדית זו וברירת דין זו. רכישת ניירות ערך שיוצעו על- פי דוח הצעת מדף שיפורסם על-פי תשקיף מדף זה תהיה כפופה להגבלות על מכירה חוזרת בהתאם לסעיף 904 ל- S Regulation, כפי שיפורט בדוחות הצעת מדף שיפורסמו על-פי תשקיף מדף זה.
תשקיף מדף זה ודוחות הצעת מדף על-פיו אינם מיועדים לפרסום, הפצה ו/או חלוקה בארה"ב ו/או ל-Persons .S.U כהגדרתם ב- S Regulation, ואף אדם אינו מוסמך לפעול למכירת ניירות הערך שיוצעו על- פי תשקיף מדף זה ודוחות הצעת מדף שיפורסמו על-פיו בארה"ב וניירות ערך שיוצעו על- פי דוחות הצעת המדף האמורים לא יוצעו או יימכרו בארה"ב ללא רישום או פטור מרישום בארה"ב. תשקיף מדף זה לא הוגש לרשות ניירות ערך בארה"ב ודוחות הצעת המדף שיפורסמו על-פיו לא יוגשו לרשות ניירות ערך בארה"ב. בכפוף לאמור להלן, ניירות הערך שיוצעו על- פי תשקיף מדף זה ודוחות הצעת המדף על- פיו יכול ולא יירשמו בהתאם ל- Act Securities בארה"ב ואסור לבעלי ניירות הערך שיוצעו על-פי תשקיף מדף זה ודוחות הצעת המדף על-פיו להציעם ו/או למוכרם ו/או לשעבדם או להעבירם בדרך אחרת בארה"ב ו/או ל- Persons .S.U, אלא אם יירשמו בהתאם ל -S Regulation , על- פי מסמך רישום לפי ה- Act Securities או אם קיים פטור מדרישת הרישום בהתאם ל- Act Securities. בכפוף לאמור להלן, ואלא אם יצוין אחרת בדוח הצעת המדף, החברה אינה מתחייבת לרשום את ניירות הערך למסחר בארה"ב בהתאם ל- Act Securities. בסמוך לרישום למסחר של ניירות ערך שיוצעו על-פי דוח הצעת מדף שיפורסם על- פי תשקיף מדף זה, ובכפוף להוראות הדין שיחולו באותו מועד, תרשום החברה למסחר את המניות הרגילות שיוצעו בדוח הצעת מדף על-פי תשקיף מדף זה או את המניות הרגילות שעשויות לנבוע כתוצאת מהמרת ניירות הערך שיוצעו כאמור, לפי העניין, בבורסת Nasdaq ורוכשי ניירות הערך האמורים יהיו רשאים למכרן ב- Nasdaq בעסקאות רגילות, בכפוף למגבלות על-פי הדין האמריקאי.
החלטה לרכוש את ניירות הערך שיוצעו על- פי תשקיף מדף זה ועל-פי דוחות הצעת מדף שיפורסמו מכוחו, יש לקבל אך ורק בהסתמך על המידע הנכלל (לרבות בדרך של הפניה) בתשקיף מדף זה ובדוחות הצעת המדף על- פיו. החברה לא התירה לכל אדם או גוף אחר כלשהו למסור מידע שונה מזה המפורט בתשקיף מדף זה. תשקיף מדף זה ודוחות הצעת המדף על-פיו אינם מהווים הצעה של ניירות ערך בכל מדינה אחרת למעט מדינת ישראל.
פרק 1 - מבוא
1.1 כללי
החברה התאגדה בישראל בשנת 1999 לפי פקודת החברות [נוסח חדש], התשמ"ג- ,1983 כחברה פרטית. ביום 1 בנובמבר 2007 נרשמו מניותיה של החברה למסחר ב- NASDAQ. ביום 8 בנובמבר 2007 נרשמו מניות החברה למסחר גם בבורסה לניירות ערך בתל אביב בע"מ (להלן: "הבורסה").
אלא אם כן נאמר מפורשות אחרת כל הסכומים בתשקיף זה נקובים בדולר ארה"ב.
1.2 היתרים ואישורים
- 1.2.1 החברה קיבלה את כל ההיתרים, האישורים והרישיונות הדרושים על- פי דין להצעת ניירות הערך על- פי תשקיף זה, להנפקתם ולפרסום תשקיף זה. תשקיף זה הינו תשקיף מדף, כהגדרתו בסעיף 23א לחוק ניירות ערך והצעת ניירות ערך על-פיו תעשה על- פי דוח הצעת מדף אשר יוגש בהתאם לחוק ניירות ערך ותקנות הצעת מדף, ואשר בו יושלמו הפרטים המיוחדים לאותה הצעה.
- 1.2.2 אין בהיתרה של רשות ניירות ערך לפרסם את התשקיף משום אימות הפרטים המובאים בו או אישור מהימנותם או שלמותם, ואין בה משום הבעת דעה על טיבם של ניירות הערך המוצעים.
- 1.2.3 החברה פנתה אל הבורסה בבקשה למתן אישור עקרוני לרישום של ניירות ערך הכלולים בתשקיף מדף זה ואשר יוצעו, ככל שיוצעו, על-פי דוח הצעת מדף (להלן: "האישור העקרוני").
אין לראות באישור העקרוני האמור של הבורסה אישור לפרטים המובאים בתשקיף המדף או למהימנותם או לשלמותם ואין בו משום הבעת דעה על החברה או על טיבם של ניירות הערך המוצעים בתשקיף המדף או על המחיר בו יוצעו בדוח הצעת המדף, כהגדרתו לעיל.
מתן האישור העקרוני אינו מהווה אישור לרישום ניירות הערך המוצעים למסחר, והרישום למסחר יהיה כפוף לקבלת אישור לבקשה לרישום ניירות הערך למסחר על- פי דוח הצעת מדף אשר יוגש בהתאם לחוק ניירות ערך ותקנות הצעת מדף.
אין לראות במתן האישור העקרוני משום התחייבות למתן אישור לרישום ניירות הערך למסחר על- פי דוח הצעת מדף. על אישור בקשה לרישום ניירות ערך למסחר על- פי הצעת מדף יחולו הוראות תקנון הבורסה וההנחיות על- פיו, כפי שיהיו בתוקף בעת הגשה הבקשה לרישום על- פי דוח הצעת המדף.
על- פי דרישת הבורסה, הצעת ניירות ערך על- פי דוחות הצעת מדף על-פי תשקיף מדף
זה תהיה מותנית בעמידת החברה בפטור מדרישת הרישום על- פי 1 Category של S Regulation) שהותקנה מכוח ה- Act Securities (ביחס לניירות הערך שיוצעו על- ידי החברה כאמור. החברה מתחייבת להגיש לבורסה חוות דעת עורך דין זר קודם למועד פרסומו של דוח הצעת מדף על- ידי החברה, לפיה אין מניעה לחברה, לפי ה- Securities Act להציע לציבור בישראל את ניירות הערך שיוצעו בדוח הצעת המדף, לרשום אותם למסחר בבורסה, לקיים בהם מסחר ולסולקם במסלקת הבורסה. על אף האמור לעיל, לפי נסיבות העניין, תתכן הצעת ניירות ערך במסגרת דוח הצעת מדף על-פי תשקיף מדף זה, אשר לא תהיה מוגבלת לתושבי ישראל בלבד, או תיתכן שתעמוד החברה בפטור מדרישות הרישום על-פי 2 Category של S Regulation, בכפוף לחוות דעת עורך הדין הזר המפורטת לעיל, והכל כפי שיפורט בדוח הצעת המדף.
בחוות דעת עורך הדין הזר של החברה שתוגש לבורסה קודם למועד פרסומו של דוח הצעת מדף על-ידי החברה להנפקת כתבי אופציה או אגרות החוב על-פי תשקיף מדף זה, יצוין אם ישנה מניעה, על- פי דיני ארה"ב החלים על החברה, לאשר בבית משפט בישראל הליך של הסדר או פשרה לפי סעיף 350 לחוק החברות, התשנ"ט1999- (להלן: "חוק החברות"), בעניין שינוי תנאי ניירות הערך של החברה ולצורך מחיקת ניירות הערך מהרישום למסחר ביוזמת החברה. לעניין זה יחולו ההוראות שלהלן:
- (א) אם נקבע בחוות הדעת האמורה, כי לא קיימת מגבלה על- פי דיני ארה״ב החלים על החברה, לאשר בבית משפט בישראל הליך של הסדר או פשרה לפי סעיף 350 לחוק החברות, תתחייב החברה, במועד הרישום למסחר לראשונה כאמור, כי אם תפעל לשינוי תנאי ניירות הערך או למחיקת ניירות הערך מהרישום למסחר ביוזמת החברה, היא תפנה לבית משפט בישראל לצורך אישור הפעולות כאמור על- פי סעיף 350 לחוק החברות.
- (ב) צרפה החברה חוות דעת כאמור בס״ק (א) לעיל, אולם הודיעה לאחר הרישום למסחר, בדיווח מיידי, כי בכוונתה לאשר הסדר או פשרה לצורך שינוי תנאי ניירות הערך או לצורך מחיקת ניירות הערך מהרישום למסחר ביוזמת החברה, וכי בית משפט בישראל אינו מאשר לקיים בפניו דיון כאמור לפי סעיף 350 לחוק החברות, תחשב החברה לעניין זה כמי שפעלה על- פי סעיף 350 לחוק החברות, ובלבד שעשתה את כל הנדרש בהתאם לאמור בסעיף 350 לחוק החברות לאישור הסדר או פשרה, לרבות כינוס אסיפות נושים ו/או אסיפות בעלי ניירות הערך לסוגיהם, ובאסיפות כאמור אושרו הפעולות ברוב של משתתפים, כנדרש על-פי סעיף 350 לחוק החברות לאישור הסדר, למעט אישור ההסדר בבית משפט בישראל.
- (ג) אם נקבע בחוות הדעת של עורך הדין שצרפה החברה כאמור לעיל, כי קיימת מגבלה על-פי דיני ארה״ב החלים על החברה, לאשר בבית משפט בישראל הליך
של הסדר או פשרה לפי סעיף 350 לחוק החברות, תתחייב החברה במסמך על-פיו נרשמים לראשונה ניירות הערך הזרים למסחר, כי אם יהיה בכוונתה לאשר הסדר או פשרה לצורך שינוי תנאי ניירות הערך או לצורך מחיקת ניירות הערך מהרישום למסחר ביוזמת החברה, היא תעשה את כל הנדרש לשם אישור הפעולות כאמור על- פי סעיף 350 לחוק החברות, לרבות כינוס אסיפות נושים ו/או אסיפות בעלי ניירות הערך לסוגיהם, ובאסיפות כאמור יאושרו הפעולות ברוב של משתתפים, כנדרש על- פי סעיף 350 לחוק החברות לאישור הסדר, למעט אישור ההסדר בבית משפט בישראל. פעלה החברה בדרך המפורטת לעיל, תחשב החברה, לעניין זה, כמי שפעלה על-פי סעיף 350 לחוק החברות.
1.3 פטור רשות ניירות ערך
- 1.3.1 סעיף 35כט' לפרק ה'3 של חוק ניירות ערך קובע, בין היתר, כי רשות ניירות ערך רשאית לפטור מהוראות הנוגעות לפרטים בתשקיף מדף זה, מבנהו וצורתו, כולן או מקצתן, תאגיד שהתאגד בישראל המציע ניירות ערך לציבור אם ניירות הערך שלו רשומים למסחר בבורסה בחו"ל.
- 1.3.2 החברה קיבלה מאת רשות ניירות ערך פטור בהתאם לסעיף 35 כט' לחוק ניירות ערך מתחולת תקנות פרטי תשקיף, ביחס לתשקיף מדף זה (להלן: "פטור הרשות"). פטור הרשות הותנה במתן חוות דעת, לפיה במקרה בו החברה היתה פועלת לרישום בארה"ב של ניירות ערך מן הסוג שניתן היה להציע על- פי תשקיף מדף זה, על-פי כללי ה- Act Securities, היתה החברה רשאית לעשות זאת באמצעות מסמך רישום על טופס -3F.
- 1.3.3 בנוסף, פטור הרשות הותנה בהתחייבותה של החברה כי כל עוד ניירות ערך של החברה, מלבד מניות, רשומים למסחר בבורסה או מוחזקים על-ידי הציבור בישראל, אם מניותיה של החברה תמחקנה מהרישום למסחר בבורסה, תגיש החברה דיווחים לפי פרק ו' לחוק ניירות ערך ותחדל תחולת הוראות פרק ה'3 לחוק ניירות ערך על החברה.
כמו כן, הותנה פטור הרשות בהתחייבותה של החברה, כי ככל שתבקש להנפיק אגרות חוב רק בישראל, אשר יוצעו על- פי תשקיף מדף זה (להלן: "אגרות החוב החדשות"), יחולו על החברה, החל ממועד הנפקת אגרות החוב החדשות, חובות הדיווח בהתאם למודל הגילוי ההיברידי, בהתאם למתכונת ולתנאים המצוינים בסעיף 1.3.6 להלן (להלן: "חובות הדיווח הנוספות" ו- "מודל הגילוי ההיברידי", בהתאמה), וזאת כל עוד אגרות החוב החדשות יהיו במחזור. יובהר כי עצם חובת החברה לבחון את תחולת חובות הדיווח הנוספות, תחול רק ממועד הנפקת אגרות החוב החדשות בפועל.
- 1.3.4 בהתאם לפטור הרשות, החברה מאשרת כי היא ערכה תשקיף מדף זה, בהתבסס על דרישות ה- Act Securities וכללי רשות ניירות ערך האמריקאית ל- -3F המיועד להצעה לציבור. בהתאם, תשקיף מדף זה (כולל המסמכים הנכללים בו על דרך הפניה), עומד מכל הבחינות הרלוונטיות בדרישות של -3F המיועד להצעה לציבור, הרלוונטיות לחברה לעניין רישום בארה"ב של ניירות ערך מהסוג המוצע לציבור על- פי תשקיף מדף זה, למעט סדר הפרקים ולמעט התאמתם של הכריכה, הפרקים הכלולים בתשקיף מדף זה שהינם בשפה העברית (וכוללים או עשויים לכלול הכללה על דרך ההפניה של דיווחים בשפה האנגלית של החברה), סעיף חוות דעת משפטית בפרק 6 לתשקיף מדף זה וכן פרק החתימות, שנערכו לפי הוראות תקנות פרטי תשקיף; וכן, למעט העובדה שב- -3F היו נכללים הצהרות, נספחים והתחייבויות מסוימים אשר אינם נכללים בתשקיף מדף זה ואשר אינם מהותיים לענין הצעת ניירות ערך לציבור בישראל.
- 1.3.5 יודגש כי תשקיף מדף זה לא הוגש לרשות ניירות ערך האמריקאית ולא נבדק על-ידה.
- 1.3.6 הוראות מודל הגילוי ההיברידי
, ובכללם החובה לבחון קיומם של "סימני אזהרה" 1 הוראות מודל הגילוי ההיברידי כמפורט להלן, יחולו כאמור על החברה רק החל מהמועד בו היא תנפיק בפועל אגרות חוב חדשות רק בישראל (להלן: "מועד ההנפקה"), וכל עוד לא יונפקו על-ידה אגרות חוב זהות לאלו שמונפקות בישראל בארה"ב, או ירשמו אגרות החוב האמורות למסחר בארה"ב.
החל ממועד ההנפקה תבחן החברה האם מתקיימים "סימני אזהרה", כפי שהם מוגדרים בסעיף 10(ב)(14) לתקנות ניירות ערך (דוחות תקופתיים ומיידיים), התש״ל- 1970 (להלן: ״תקנות הדוחות"), והחל ממועד התקיימות סימני אזהרה כאמור, וכל , יחולו על החברה חובות הדיווח הנוספות, כמפורט 2 עוד סימני האזהרה מתקיימים להלן:
1) תקנה 10(ב)(14) לתקנות הדוחות - גילוי אודות התקיימות סימני אזהרה בתאגיד וצירוף דוח תזרים מזומנים חזוי במקרים הנדרשים בתקנה; בחינת סימני האזהרה תיעשה על- פי הדוחות הכספיים המאוחדים של החברה (או על- פי פרסום נתוניה הכספיים הרבעוניים);
יובהר כי במקרה של שינוי ו/או תיקון להחלטת מליאת הרשות מספר :2013-1 שינוי במודל הטיפול ומתן 1 פטור לחברות ברישום כפול שמנפיקות אג״ח רק בישראל מיום 9.9.2013 ו/או לתקנות ניירות ערך (דוחות תקופתיים ומיידיים), התש״ל- ,1970 ביחס לדרישות הגילוי, הגילוי יבוצע ויותאם, בשינויים המחויבים, בהתאם לתיקון ו/או לשינוי בהחלטת הרשות ו/או לתקנות כאמור.
המועד בו סימני האזהרה אשר מבוססים על דוחות כספיים או על חוות דעתו או סקירתו של רואה החשבון 2 המבקר, יחדלו להתקיים יהיה המועד הראשון בו יפורסמו דוחות כספיים, חוות דעת או סקירה בהתאמה ללא סימני אזהרה.
- 2) תקנה 10(ב)(1)(ד) לתקנות הדוחות גילוי אודות הבחינה שנעשתה על-ידי הדירקטוריון לגבי מצב הנזילות של החברה, מקום שקיים אחד או יותר מסימני האזהרה, והנימוקים להחלטה;
- 3) תקנה 35א לתקנות הדוחות דיווחים מיידיים לטובת מחזיקי תעודות התחייבות שבמחזור;
- 4) תקנה 37(א)(1) לתקנות הדוחות פרטים על חלוקת דיבידנד;
- 5) תקנה 37(א)(5) לתקנות הדוחות פדיון מוקדם של אגרות חוב;
- 6) תקנה 31ח לתקנות הדוחות פשרה או הסדר;
- 7) תקנות 37כ37-כה גילוי אגב הסדרי חוב.
- 6) תקנה 31ח לתקנות הדוחות פשרה או הסדר;
בנוסף, רשות ניירות ערך תוכל להפעיל את סמכויותיה הבאות ביחס לדרישות מודל הגילוי ההיברידי: (א) סמכויות הרשות לדרוש קבלת מידע, פרטים ומסמכים הקשורים למידע המתבקש במסגרת מודל הגילוי ההיברידי; (ב) סמכויות הרשות לעניין דרישה לפרסום דיווח מיידי ו/או דיווח מתקן ו/או דיווח משלים; (ג) סמכויות הרשות לעניין דרישה להוספת גילוי או מידע כאמור בדיווחי החברה, ככל שהדבר נחוץ לצורך הגנת ציבור המשקיעים באגרות החוב בהתאם למודל ההיברידי.
- 1.3.7 דוח הצעת מדף שתפרסם החברה על- פי תשקיף מדף זה יכלול (במסגרת הדוח או על דרך ההפניה) מידע משלים בגין התפתחויות מהותיות בחברה ממועד תשקיף מדף זה וכן מידע משלים נוסף, והכל בהתבסס על דרישות ה- Act Securities וכללי רשות ניירות ערך האמריקאית ל- -3F, לרבות מידע כספי מעודכן בהתבסס על דרישות כללי רשות ניירות ערך האמריקאית בסעיף 8 של F20- Form, אם וכלל שיידרש, וזאת בנוסף לפרטים הדרושים על-פי תקנות הצעת מדף (ובכללם השלמת פרטים אודות ניירות הערך המוצעים וכל פרט אחר הטעון תיאור על- פי אותן תקנות).
- 1.3.8 הדיווחים השוטפים של החברה הינם בשפה האנגלית, על-פי הדין בארה"ב, בהתאם לכללי הרישום הכפול הקבועים בפרק ה'3 לחוק ניירות ערך והתקנות שהותקנו מכוחו (כללי הרישום הכפול). בנוסף, על-פי פטור הרשות, החברה תמשיך לדווח על-פי כללי הרישום הכפול כאמור.
- 1.3.9 תשקיף מדף זה כולל פרטים על דרך ההפניה. לפרטים ראו סעיף 3.12 " of Incorporation ."Certain Documents by Reference
פרק 2 - הצעת ניירות הערך על פי תשקיף המדף
על פי תשקיף מדף זה, יכול שיוצעו לציבור מניות רגילות של החברה, אגרות חוב שאינן ניתנות להמרה, אגרות חוב הניתנות להמרה למניות רגילות של החברה, כתבי אופציה הניתנים למימוש למניות רגילות של החברה, כתבי אופציה הניתנים למימוש לאגרות חוב אשר אינן ניתנות להמרה, כתבי אופציה הניתנים למימוש לאגרות חוב הניתנות להמרה, וניירות ערך מסחריים (להלן: "ניירות הערך").
הצעת ניירות הערך על פי תשקיף מדף זה תיעשה בהתאם להוראות סעיף 23א(ו) לחוק ניירות ערך, באמצעות דוחות הצעת מדף בהם יושלמו כל הפרטים הנדרשים לפי פרק ג' לתקנות פרטי תשקיף ביחס לאותה הצעה, לרבות פרטי ותנאי ניירות הערך והרכב היחידות המוצעות, בהתאם להוראות כל דין, ובכלל זה בהתאם לתקנון ולהנחיות הבורסה ולעמדות סגל רשות ניירות ערך כפי שיהיו באותה העת.
פרק 3
The offering of the securities described herein has not been registered with the United States Securities and Exchange Commission and will not take place in the United States, and the securities will not be offered to U.S. persons (as defined in Regulation S under the Securities Act (as defined below)).
3.1 General
Unless otherwise mentioned or unless the context requires otherwise, all references in this shelf prospectus to:
The "Company," "us," "we," "our" are to B Communications Ltd. and its subsidiaries. As used in this chapter, "Internet Gold" means "Internet Gold - Golden Lines Ltd," "Eurocom Communications" means "Eurocom Communications Ltd.," "Bezeq" means Bezeq The Israel Telecommunications Corp. Ltd., "SP1" means B Communications (SP1) Ltd., "SP2" means B Communications (SP2) Ltd., "Pelephone" means Pelephone Communications Ltd., "Bezeq International" means Bezeq International Ltd. and "YES" (the trade name for DBS) and DBS mean DBS Satellite Services (1998) Ltd. Bezeq, Pelephone, Bezeq International and DBS are sometimes collectively referred to as the Bezeq Group in this chapter. The operations of DBS have been included in Bezeq's consolidated financial statements since March 23, 2015, after Bezeq obtained control of DBS.
"Our shares," "ordinary shares" and similar expressions refer to our ordinary shares, par value 0.1 New Israeli Shekels per share.
"Dollars", "US dollars" or "\$" are to United States Dollars.
"NIS" are to New Israeli Shekels.
The "Companies Law" are to the Israeli Companies Law, 5759-1999, as amended.
The "Securities Law" are to the Israeli Securities Law, 5738-1968, as amended.
The "Securities Act" are to the United States Securities Act of 1933, as amended.
The "Exchange Act" are to the United States Securities Exchange Act of 1934, as amended.
"TASE" are to the Tel Aviv Stock Exchange.
The "SEC" are to the United States Securities and Exchange Commission.
The "ISA" are to the Israel Securities Authority.
The "2015 Form 20-F" are to our Annual Report on Form 20-F for the year ended December 31, 2015, which we filed with the SEC on April 19, 2016.
This shelf prospectus contains translations of NIS amounts into US dollars at specified rates solely for the convenience of the reader. No representation is made that the amounts referred to as convenience translations could have been or could be converted from NIS into US dollars at these rates, at any particular rate or at all. Unless otherwise indicated, US dollar translations of NIS amounts presented in this prospectus are translated using the rate of NIS 3.902 to US\$1.00, the exchange rate reported by the Bank of Israel on December 31, 2015. Certain of the reported NIS figures of June 30, 2016 have been presented in millions of U.S. dollars, translated at the representative rate of exchange as of June 30, 2016 (NIS 3.846 = U.S. \$ 1.00).
Statements made in this prospectus concerning the contents of any contract, agreement or other document are summaries of such contracts, agreements or documents and are not complete descriptions of all of their terms. If we filed any of these documents as an exhibit to an annual report or to any previous filling with the SEC, you may read the document itself for a complete recitation of its terms. All trademarks appearing in this prospectus and in documents incorporated by reference herein are the property of their respective holders.
3.2 Forward-Looking Statements
This prospectus, the documents incorporated in it by reference and accompanying supplemental prospectus shelf offering reports may contain or incorporate statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements can be identified by the use of forward-looking language such as "anticipate," "believe," "estimate," "expect," "intend," "will," "plan," "project," "seek," "could," "should" or other similar words. Our actual results, performance or achievements could be significantly different from the results expressed in or implied by these forward-looking statements. These statements are subject to certain risks and uncertainties, including but not limited to certain risks referenced in "3.4 Risk Factors" below and in "Item 3D. Risk Factors" and "Item 11. Quantitative and Qualitative Disclosures about Market Risk" of the 2015 Form 20-F, in any of the documents that we incorporate herein by reference and in any applicable supplemental prospectus shelf offering reports. When considering these forward-looking statements, you should keep in mind these risks, uncertainties and other cautionary statements made in this prospectus and any applicable supplemental prospectus shelf offering reports. You should not place undue reliance on any forward-looking statement, which speaks only as of the date made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should refer to the "Risk Factors" section of this prospectus or our periodic and current reports filed with the SEC for specific risks which could cause actual results to be significantly different from those expressed or implied by these forward-looking statements.
3.3 Summary Information Regarding the Company
You should read the following summary together with the more detailed information regarding us and the securities being offered hereby, including the risks discussed under the heading "3.4 Risk Factors" contained in this shelf prospectus. You should also read carefully the consolidated financial statements and notes thereto and other information about us (including information contained in our 2015 Form 20-F) that is incorporated by reference in this shelf prospectus.
Our Company
We were organized under the laws of the State of Israel in 1999 as "Gold E Ltd." We changed our name to Goldtrade Electronic Trading Ltd. in 2000, to Smile. Communications Ltd. in 2006 and to 012 Smile. Communications Ltd. in 2007. On March 16, 2010, we changed our name to B Communications Ltd. in connection with our acquisition of the controlling interest in Bezeq.
We are a public limited liability company under the Companies Law and operate under such law and associated legislation. Our principal executive offices are located at 2 Dov Friedman Street, Ramat Gan 5250301, Israel, and our telephone number is +972-3-924-0000. Our website address is www.bcommunications.co.il. The information on our website is not incorporated by reference into this prospectus.
Prior to our October 2007 initial public offering in the United States, we were a wholly-owned subsidiary of Internet Gold, a public company traded on the NASDAQ Global Select Market and the TASE. Internet Gold owned 64.78% of our ordinary shares as of the date of this prospectus and Eurocom Communications owned 61.92% of Internet Gold's outstanding shares as of such date. Mr. Shaul Elovitch, our chairman and the chairman of Internet Gold and its parent, Eurocom Communications, and the controlling shareholder of Eurocom Communications, is able to exercise control over our operations and business strategy and control the outcome of all matters involving shareholder approval.
Acquisition of the Controlling Interest in Bezeq
On April 14, 2010, we completed the acquisition of 30.44% of Bezeq's outstanding shares from Ap.Sb.Ar. Holdings Ltd. For a purchase price of approximately NIS 6.5 billion in cash and became the controlling shareholder of Bezeq. The Bezeq interest was directly acquired by an indirect wholly-owned subsidiary of our company. In accordance with the terms of the transaction, effective as of the closing of the acquisition, we designated seven directors to replace the Apax-Saban-Arkin Group's representatives. We began consolidating Bezeq's financial results into our financial statements effective as of the closing of the acquisition and began reporting the consolidated results in our 2010 second quarter earnings release.
In February 2014, we closed a private offering of \$800 million of 7⅜% Senior Secured Notes due 2021 (the "Secured Notes"). The Secured Notes were offered and sold in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act, and to certain qualifying investors in offshore transactions, including in Israel, in reliance on Regulation S under the Securities Act.
On February 2, 2016, our wholly-owned subsidiary, SP2, sold 115,500,000 Bezeq shares. As a result, we received gross proceeds of NIS 8.50 per share, or NIS 982 million in the aggregate (approximately \$248 million). We retained a 26.34% ownership interest in Bezeq following the closing of the transaction. In addition to our ownership of Bezeq shares, a total of 1,000,000 ordinary shares of Bezeq are jointly held by Mr. Shaul Elovitch, our controlling shareholder, and his brother Mr. Yossef Elovitch. An additional 72,360 ordinary shares of Bezeq are held by Ms. Iris Elovitch, the wife of Mr. Elovitch, and 11,556 ordinary shares of Bezeq are held by Ms. Orna Elovitch, the daughter-in-law of Mr. Elovitch.
According to the terms of the indenture for our Secured Notes (the "Indenture"), the net proceeds from the sale of any Bezeq shares held by our company or our subsidiaries SP1 and SP2 were deposited into a "Lockbox Account" and were subject to other customary conditions and covenants relating to asset sales and release of liens on sold assets. In addition, according to the terms of the indenture, we were required to make an offer within 365 days to the holders of the Secured Notes to purchase Secured Notes with the proceeds deposited in the lockbox account at a cash offer price equal to 100% of the principal amount of the Secured Notes, plus accrued and unpaid interest to the date of purchase. On June 28, 2016, we announced the final results of our modified Dutch auction tender offer pursuant to a Tender Offer Memorandum dated May 26, 2016 to purchase a portion of the Secured Notes. Approximately US\$ 18,600,000 in aggregate principal amount of the Secured Notes were validly tendered. The purchase of the Secured Notes under the tender offer were made from the funds made available by the Company, including cash-on-hand and the net cash proceeds from the Company's sale of the 115,500,000 ordinary shares of Bezeq in February 2016. As of June 30, 2016, NIS 2.5 billion (approximately \$650 million) of the Secured Notes remains outstanding.
Permit to Control Bezeq Granted to Members of the Eurocom Group
As part of our acquisition of the controlling interest in Bezeq, we, Internet Gold, SP2, SP1, and other members of the Eurocom Group applied for authorization to control Bezeq, pursuant to the Communications Law and Communications Order. On April 13, 2010, the control permit was granted subject to the condition that SP2 will be controlled exclusively by the other parties to the control permit, referred to as the Companies' Control Permit. Concurrently, a separate control permit was also granted to Messrs. Shaul Elovitch and Yossef Elovitch, our controlling shareholders, referred to as the Individuals' Control Permit.
According to the Companies' Control Permit, the parties (through SP2) must hold not less than 30% of any type of means of control of Bezeq. Such percentage is permitted to decrease to 29% for a period of six months commencing from the date such holdings fall below 30%, in the event of dilution resulting from the exercise of stock options by Bezeq employees. Despite the 30% rule, according to Article 3(a3) of the Communications Order, which is included as part of the Control Permit, the parties to the Control Permit may hold less than 30% under certain circumstances, including the requirement that the parties control Bezeq and maintain at least a 25% ownership interest in Bezeq.
In connection with our issuance of the Secured Notes, the security agent for such notes was granted a pledge permit which enabled us to pledge the pledged Bezeq Shares and pledged SP2 Shares as collateral for some of the Secured Notes and certain hedging obligations. However, pursuant to the Communications Order and the Pledge Permit, no person (individually and acting in concert with other persons) may directly or indirectly hold, acquire or control, at any given time, more than 10% of the outstanding principal amount of Secured Notes without first obtaining a permit.
Business Overview
Since April 14, 2010, we have been the controlling shareholder of Bezeq (TASE:BZEQ), Israel's largest telecommunications provider. Bezeq is the principal provider of communications services in Israel, providing a broad range of telecommunications operations and services, including domestic fixed-line, cellular and international communication services, Internet services, multi-channel television, television and radio broadcasts, satellite broadcasts, customer call centers, maintenance and development of communications infrastructures, provision of communications services to other communications providers and the supply and maintenance of equipment on customer premises, which is referred to as network end point, or NEP services. Bezeq was founded as a government company in 1980 and became a public company in 1990 with its shares traded on the TASE and included in the TA-25 Index.
Bezeq's Operations
Our principal asset is our controlling interest in Bezeq, Israel's largest telecommunications provider based on revenue and subscribers. The Bezeq Group operates the most comprehensive telecommunications infrastructure in Israel, with a broad range of telecommunications services across all of its markets. Through its wholly-owned subsidiaries, the Bezeq Group is a leading provider in Israel of fixed-line telephony services and fixed-line broadband Internet infrastructure access services, cellular telephony services, ISP services, ILD services, international and domestic data transfer and network services and ICT, pay television services and other communications infrastructures and services. In each of these markets, the Bezeq Group holds a significant market share, as indicated in the chart below.
| As of December 31, 2015 |
|||
|---|---|---|---|
| Bezeq Group Segments |
Service | Estimated Market Share |
Market Position |
| Bezeq | Fixed-Line Telephony (private sector) | 56.0% | 1 of 4 |
| Fixed-Line Telephony (business sector) | 74.0% | 1 of 2 | |
| Fixed-Line Broadband Internet Infrastructure Access | 68.0% | 1 of 2 | |
| Pelephone | Cellular Telephony | 25.6% | 3 of 5 |
| Bezeq International | ISP | 44.0% | 1 of 4 |
| ILD | 21.0% | - | |
| DBS | Pay Television | 44.0% | 2 of 2 |
The Bezeq Group had approximately 2.18 million active fixed telephone lines in its fixed-line telephony business, 1.48 million fixed-line broadband Internet infrastructure access services subscribers (retail and wholesale), 2.65 million cellular telephony services subscribers and 635,000 pay television services subscribers as of December 31, 2015. For the year ended December 31, 2015, the Bezeq Group had revenues of NIS 9.99 billion (approximately \$2.56 billion).
The Bezeq Group's diversified telecommunications services are based on highly advanced nationwide infrastructures and are provided by the following segments of the Bezeq Group:
Domestic Fixed-Line Communications (Bezeq)
Bezeq is the incumbent and largest provider of fixed-line telephony and fixed-line broadband Internet infrastructure access services in Israel. Its products and services include basic telephony services on domestic telephone lines and associated services and fixed-line broadband Internet infrastructure access services through its nationally deployed, high quality infrastructure network. Bezeq also offers, among other services, transmission and data communication services, services to other communications operators and broadcasting services. Bezeq's new high-speed next generation network, or NGN, is the most advanced fixed-line communications network in Israel. The NGN, which covers 100% of Israeli households, uses VDSL2
| Bezeq Domestic Fixed-Line Communications | As at and for the year ended December 31, 2015 |
|---|---|
| (in millions, except percentages) |
|
| Revenues | NIS 4,407 |
| Fixed-line telephony | |
| Estimated market share(1) | 65% |
| Active lines | 2.181 |
| Churn rate | 10.1% |
| Fixed-line broadband Internet infrastructure access | |
| Estimated market share | 68% |
| Subscribers | 1.479 |
technology and enables Bezeq to provide bandwidth of up to 100 Mbps (download) speed, as well as innovative value-added services.
(1) As of December 31, 2015, Bezeq's market share in the business and private sectors of the fixed-line telephony market is estimated to be 74% and 56%, respectively.
Cellular Telephony (Pelephone)
Pelephone is among the leading cellular telephony services providers in Israel. Pelephone provides cellular telephony services, sells handsets and other end-user equipment, and provides repair services for handsets sold by Pelephone. Pelephone's nationwide 3.5G UMTS/HSPA+ network supports download speeds of up to 42 Mbps and upload speeds of up to 5.7 Mbps, making it one of the fastest, highest quality and most advanced networks in Israel. We believe these network features provide Pelephone with a strong platform to continue to offer a variety of advanced services and products to its customers and to capitalize on the continued increasing demand for smartphones and advanced data services.
The intensified competition in the cellular market has led to subscriber churn and a price war where the operators continuously lower prices to undercut the competition. This has led to substantial erosion of the average revenue per subscriber. This trend continued and even increased in 2015, as the average revenue per subscriber decreased by 19% as compared with 2014.
The opening of the market to parallel imports and multiple stores selling terminal equipment has led to a decline in the sales of cellular handsets and terminal equipment by the cellular operators. To minimize its exposure to decreased revenues, Pelephone increased the range of equipment it sells and also sells non-cellular handset terminal equipment such as tablets, laptops and accessories. In February 2016, Pelephone launched two new budget smartphones, GINI N6 and GINI W5. Pelephone's revenue from terminal equipment in 2015 amounted to NIS 891 million, accounting for 31% of its total revenues compared with terminal equipment revenues of NIS 966 million in 2014, accounting for 28% of its total revenues. Most terminal equipment is sold through monthly installments. The decrease in terminal equipment sales over the years has led to a decrease in trade receivables as well as to a decline in trade payables to terminal equipment suppliers.
The cellular market growth rate is lower due to penetration rate saturation. The penetration rate in Israel at December 31, 2015 was 124%.
| Pelephone | As at and for the year ended December 31, 2015 |
|
|---|---|---|
| (in millions, except percentages) |
||
| Revenues | NIS 2,890 | |
| Estimated market share | 25.6% | |
| Active lines* | 2.65 | |
| Churn rate | 25.8% |
* During the second quarter of 2016, Pelephone performed a one-time write-off of 499,000 subscribers on the CDMA network who have not made use of outgoing calls / surfing in the last six months.
ISP, ILD, Data Services and ICT (Bezeq International)
Bezeq International is the leading provider of ISP services in Israel and one of Israel's leading providers of ILD and international and domestic data transfer and network services. Bezeq International provides comprehensive communications solutions that include ISP and related value-added services, international and domestic telephony, PBX supply and support, ICT, cloud computing services, data communications and information security, website server hosting and related managed services. Bezeq International also owns the JONAH high-speed submarine optical fiber communications cable system connecting Israel and Europe, which provides increased bandwidth (capacity and speed) and has positioned Bezeq International as the sole ISP in Israel to own and operate an advanced international network.
| Bezeq International | As at and for the year ended December 31, 2015 |
|---|---|
| (in millions, except percentages) |
|
| Revenues | NIS 1,578 |
| ISP | |
| Estimated market share | 44.0% |
| Churn rate | 17.3% |
|---|---|
| ILD | |
| Estimated market share | 21.0% |
Multi-Channel Pay Television (DBS)
DBS offers nationwide coverage through its DTH technology and is the only company in Israel licensed to provide multi-channel pay television broadcasts via satellite and is one of only two companies in Israel licensed to provide multi-channel television services, with nation-wide coverage and innovative and advanced technologies, including PVR, VOD and HD television. DBS focuses on creating clear differentiation from its main competitor, HOT, with respect to brand, content and service quality. In addition, DBS has a strong track record of innovative technology development and is a leading provider of value-added services, including hybrid IP and DTH based set-top boxes (including PVR and VOD).
Apart from DBS, the only other broadcasting licensee in the multi-channel television broadcasting sector is HOT, which provides cable television services to subscribers and has a pronounced monopoly under the Antitrust Law in the multi-channel television broadcasting sector. Cellcom Group's Cellcom also operates in the multi-channel television sector, providing television services via the Internet that customers access to view VOD and a few linear channels (including the DTT content) by either using a special streamer or application.
| DBS | As at and for the year ended December 31, 2015 |
|---|---|
| (in millions, except percentages) |
|
| Revenues | NIS 1,774 |
| Estimated market share | 44.0% |
| Subscribers (in thousands) | 635 |
| Churn rate | 13.9% |
3.4 Risk Factors
Investing in our ordinary shares or other securities involves risks. Before making an investment decision, you should carefully consider the risks described under "Risk Factors" in the applicable supplemental prospectus shelf offering reports and in the 2015 Form 20-F, and in our updates, if any, to those risk factors in our reports of foreign private issuer on Form 6-K, together with all of the other information appearing in this prospectus or incorporated by reference into this shelf prospectus and any applicable supplemental prospectus shelf offering report, in light of your particular investment objectives and financial circumstances. In addition to those risk factors, there may be additional risks and uncertainties of which management is not aware or focused on or that management deems immaterial. Our business, financial condition or results of operations could be materially adversely affected by any of these risks. The trading price of our securities could decline due to any of these risks, and you may lose all or part of your investment.
3.5 Offer Statistics and Expected Timetable
We may sell from time to time pursuant to this prospectus (as shall be detailed in supplemental prospectus shelf offering reports) an indeterminate number of ordinary shares, nonconvertible debt securities, convertible debt securities and warrants. The actual price per share or per security of the securities that we will offer pursuant hereto will depend on a number of factors that may be relevant as of the time of offer. You should carefully read this shelf prospectus and any supplemental prospectus shelf offering reports, together with our other filings referenced below under "3.13. Where You Can Find More Information", before purchasing any of our securities.
3.6 Ratio of Earnings to Fixed Charges
Our ratio of earnings to fixed charges for the periods indicated below was as follows:
| Ratio of Earnings to Fixed Charges (1) |
2011 | 2012 | 2013 | 2014 | 2015 | Six Months Ended on June 30, 2016 |
|---|---|---|---|---|---|---|
| 2.02 | 2.74 | 3.18 | 2.89 | 2.93 | 2.83 |
(1) For the purpose of these computations, earnings have been calculated as the sum of (i) pretax income from continuing operations and (ii) amortization of capitalized interest offset by interest capitalized. Fixed charges consist of the sum of (i) interest expensed and capitalized, amortization of premiums, discounts and capitalized expenses related to indebtedness; and (ii) an estimate of the interest within rental expense (calculated as 25% of rental expense).
3.7 Use of Proceeds
Except as otherwise described in any supplemental prospectus shelf offering reports, we anticipate using the net proceeds from the sale of the securities pursuant to this shelf prospectus for general corporate purposes, which may include refinancing outstanding debt, financing our operating and investment activities, financing further investments in our subsidiaries or affiliate company or future acquisitions (if any), and dividend distributions (if permitted under Israeli law), subject in each case to the discretion of our board of directors from time to time.
3.8 Capitalization and Indebtedness
The following table sets forth our capitalization as of June 30, 2016. The information in this table should be read in conjunction with and is qualified by reference to the consolidated financial statements and notes thereto and other financial information incorporated by reference in this shelf prospectus:
As of June 30, 2016
| (NIS in millions, except per share data) | Actual |
|---|---|
| (unaudited) | |
| Debt# | |
| B Communications existing debentures | 3,425 |
| Bezeq bank debt | 4,595 |
| Bezeq existing debentures | 6,909 |
| Total debt | 14,929 |
| Ordinary shares, NIS 0.1 par value, 50,000,000 shares authorized; 29,889,045 ordinary shares outstanding |
3 |
| Share premium | 1,057 |
| Accumulated earnings | 416 |
| Other reserves | (50) |
| Treasury shares (19,230 shares) | * |
| Shareholders' equity | 1,426 |
| Total capitalization | 16,355 |
3.9 Description of Securities
The description of our ordinary shares contained in this shelf prospectus, together with the description of any other equity or debt securities that we may offer pursuant to this shelf prospectus, as to be described in any supplemental prospectus shelf offering reports, summarize the material terms and provisions of the various types of securities that we may offer. We will describe in the applicable supplemental prospectus shelf offering report relating to any securities the particular terms of the securities offered by that shelf offering report.
We may sell from time to time, in one or more offerings, ordinary shares, nonconvertible debt securities, convertible debt securities, warrants, options to purchase debt securities and short-term (one-year term) tradable notes and any combination of those securities. In this prospectus, we refer to each of the foregoing collectively as "securities."
This base prospectus may not be used to consummate a sale of securities unless it is accompanied by a supplemental prospectus shelf offering report.
Description of Ordinary Shares
Our authorized share capital consists of 50,000,000 ordinary shares, par value NIS 0.1 per share, of which 29,889,045 shares were issued and outstanding as of June 30, 2016.
Memorandum and Articles of Association
Objects and Purposes. Our registration number with the Israeli Registrar of Companies is 512832742. Our objects and purposes, as provided by our Articles of Association, are to carry on any lawful activity.
Rights Attached to Shares. Our authorized share capital consists of 50,000,000 ordinary shares of a nominal value of NIS 0.1 each. All of our issued and outstanding ordinary shares are duly authorized, validly issued, fully paid and non-assessable. Our ordinary shares are not redeemable and do not have preemptive rights.
Dividend and Liquidation Rights. The holders of the ordinary shares will be entitled to their proportionate share of any cash dividend, share dividend or dividend in kind declared with respect to our ordinary shares. Our board of directors may declare a dividend to be paid to the holders of ordinary shares in proportion to the paid up capital attributable to the shares that they hold. Dividends may only be paid out of our profits and other surplus funds, as defined in the Companies Law, as of the end of the most recent fiscal year or as accrued over a period of two years, whichever is higher, provided that there is no reasonable concern that a payment of a dividend will prevent us from satisfying our existing and foreseeable obligations as they become due. If we do not meet the profit requirement, we may seek the approval of the court to distribute a dividend. The court may approve our request if it is convinced that there is no reasonable risk that a distribution might prevent us from satisfying our existing and anticipated obligations as they become due.
Under the Companies Law, a dividend declaration must be approved by the board of directors and does not require the approval of the shareholders of a company unless the company's articles of association provide otherwise. Our articles of association do not require shareholder approval of a dividend distribution.
In the event of our liquidation, after satisfaction of liabilities to creditors, our assets will be distributed to the holders of ordinary shares in proportion to the paid up capital attributable to the shares that they hold. Dividend and liquidation rights may be affected by the grant of preferential dividend or distribution rights to the holders of a class of shares with preferential rights that may be authorized in the future.
Our latest dividend distribution was on June 29, 2016. We paid a dividend of NIS 355 million (approximately \$92 million), or NIS 11.88 (approximately \$3.07) per ordinary share.
Exceptional Holdings; Principal Shareholders. Under the Communications Order, no person may hold, directly or indirectly, "significant influence" over Bezeq or 5% or more of any particular class of means of control in Bezeq, nor may any person, together with any other person, appoint, elect or dismiss the general manager of Bezeq or cause the election, appointment or dismissal of any director of Bezeq, without the prior written consent of the Prime Minister of Israel and the Israeli Minister of Communications. Subject to certain exceptions, prior written approval of such Ministers is also required to increase the holdings or other rights in excess of those determined in the initial approval, including by means of an agreement (including a voting agreement). Furthermore, under the Communications Order, no person may transfer control, "significant influence" or means of control in Bezeq to another, if, as a result of the transfer, the holdings of the transferee would require approval pursuant to the Communications Law or Communications Order and the transferee is not in possession of the requisite approval. Any such unauthorized acquisition is referred to as "Exceptional Holdings." For the foregoing purposes, "significant influence" means the ability to significantly influence the activity of a corporation, whether alone or together with or through others, directly or indirectly, other than as a result of holding "means of control" in that corporation or in another corporation, and including ability derived from the corporation's articles of association, a written, oral or other kind of agreement, or from any other source. In this context, the right to appoint an officer and holding 25% of our "means of control" is presumed to confer significant influence. "Means of control" means the right to vote at a general meeting of the company, to appoint a director or general manager of the company, to participate in the profits of the company or a share of the remaining assets of the company after payment of its debts upon liquidation.
In compliance with the Communications Law and Communications Order following our acquisition of the controlling interest in Bezeq, our Articles of Association provide that Exceptional Holdings will not entitle the holder to any rights in respect of such holdings, unless and to the extent permitted under the Communications Order. Accordingly, Exceptional Holdings will not have any voting rights at a general meeting of shareholders. Each shareholder participating in a general meeting of shareholders will be required to certify to us prior to the vote or, if the shareholder is voting by a proxy or any similar instrument, on such proxy card or similar instrument, as to whether or not his or her holdings in our company or his or her vote require the approval of the Prime Minister of Israel and the Israeli Minister of Communications, pursuant to the Communications Law and Communications Order. In addition, no director may be appointed, elected or removed from office by virtue of the vote of a holder of Exceptional Holdings. If a director is appointed, elected or removed from office by virtue of the vote of a holder of Exceptional Holdings, such appointment, election or removal from office shall have no effect.
Under our Articles of Association, any person holding a number of our shares that requires approval under the Communications Order shall notify us, Bezeq, the Prime Minister of Israel and the Israeli Minister of Communications of such holdings in writing, no later than 48 hours from the date of acquiring such holdings.
Our Articles of Association include reporting requirements applicable to "Principal Shareholders," meaning a holder, directly or indirectly, of 5% of our issued and outstanding share capital. Any person who, after acquiring, directly or indirectly, shares in our company becomes a "Principal Shareholder," is required, no later than 48 hours after becoming a Principal Shareholder, to notify us in writing, specifying the number of our shares held by such shareholder and the date on which such shareholder became a Principal Shareholder. Any person who ceases to be a Principal Shareholder is required, no later than 14 days thereafter, to notify us in writing of the date on which such person ceased to be a Principal Shareholder. In addition, a Principal Shareholder is required to notify us in writing of any aggregate change in its holdings of our shares in an aggregate amount equal to 1% or more of our outstanding share capital compared to the last notice of holdings submitted by such Principal Shareholder, no later than 48 hours after such change. In the event a Principal Shareholder fails to provide any required notice, as discussed above, then until such Principal Shareholder provides us with the requisite notice, the Principal Shareholder will not be entitled to any rights in respect of such shares and the provisions of the Communications Order with respect to the exercise of rights underlying Exceptional Holdings will apply, and the undisclosed holdings shall also be deemed "dormant shares," as defined under the Companies Law.
Under our Articles of Associations, we are required to notify the Prime Minister of Israel and the Israeli Minister of Communications of any Exceptional Holdings immediately upon becoming aware of such event. We are also required to notify such Ministers in the event a shareholder becomes a Principal Shareholder and regarding any change in the holdings of a Principal Shareholder within 48 hours of becoming aware of such change.
Voting Rights. Holders of ordinary shares have one vote for each ordinary share held on all matters submitted to a vote of shareholders, subject to the restrictions described above relating to Exceptional Holdings and Principal Shareholders. Such voting rights may be affected by the grant of any special voting rights to the holders of a class of shares with preferential rights that may be authorized in the future.
Election of Directors
Our ordinary shares do not have cumulative rights for the election of directors. Rather, under our articles of association, our directors (other than the external directors) are elected by a vote of the holders of a majority of the voting power represented and voting at our annual general meetings of shareholders, and hold office until the next annual general meeting of shareholders and until their successors have been elected. For further information, see Item 6C. "Directors, Senior Management and Employees – Board Practices – Election of Directors" of the 2015 Form 20-F. Internet Gold, our controlling shareholder, is able to elect all of our directors other than our external directors. For further information regarding the election of external directors, see Item 6C. "Directors, Senior Management and Employees - Board Practices - External directors" of the 2015 Form 20-F. All the members of our Board of Directors (except the external directors) may be reelected upon completion of their term of office.
Under our Articles of Association, provisions relating to the election and removal of directors who are not external directors, within the meaning of the Companies Law, may not be modified without the prior written consent of the Israeli Minister of Communications.
Regulations promulgated under the Communications Law require that our chief executive officer, any member of our board of directors holding an executive role, as well as a majority of the members of the board of directors, be citizens and residents of the State of Israel.
Annual and Extraordinary Meetings
Under the Companies Law and our articles of association, our board of directors must convene an annual meeting of shareholders at least once every calendar year and within 15 months of the last annual meeting. Depending on the matter to be voted upon, and subject to the Companies Law and regulations thereunder, notice of at least 14 days or 21 days or 35 days prior to the date of the meeting is required. Our articles of association provide that notice of a general meeting of shareholders will be delivered to all eligible shareholders by publication in two daily Hebrew language newspapers in Israel that have a reasonably-sized readership. Our board of directors may, in its discretion, convene additional meetings as "special general meetings." In addition, the board must convene a special general meeting upon the demand of: (a) two of the directors or 25% of the directors in office, (b) one or more shareholders having at least 5% of the outstanding share capital and at least 1% of the voting power in the company, or (c) one or more shareholders having at least 5% of the voting power in the company. The chairman of the board of directors presides at each of our general meetings. The chairman of the board of directors is not entitled to a vote at a general meeting in his capacity as chairman.
Quorum
The quorum required for any general meeting is the presence, in person or by proxy, of shareholders holding or representing, in the aggregate, at least one third of the voting rights. No business shall be considered or determined at a general meeting, unless the requisite quorum is present within half an hour from the time designated for the general meeting. If within half an hour from the time designated for the general meeting a quorum is not present, the general meeting shall stand adjourned to the same day in the following week, at the same time and place, or to such other time as designated in the notice of such adjourned meeting. If within half an hour from the time designated for the adjourned meeting a quorum is not present, any number of shareholders present will constitute a quorum. However, if the general meeting was convened on the demand of shareholders, the adjourned meeting shall take place only if there are present at least the number of shareholders required to convene a general meeting under our articles of association (as discussed above).
A general meeting in which a quorum is present may resolve to adjourn the meeting, the discussion or the vote on a matter included in the agenda to such other time and place as it may determine. Only matters that were on the agenda and in respect of which no resolution was passed shall be discussed at the adjourned meeting.
Resolutions
An ordinary resolution requires approval by the holders of a simple majority of the voting rights represented at the meeting, in person, by proxy or by written ballot, and voting on the resolution.
Under the Companies Law, unless otherwise provided in the articles of association or applicable law, all resolutions of the shareholders require a simple majority. A resolution for the voluntary winding up of the company requires approval by holders of 75% of the voting rights represented at the meeting, in person, by proxy or by written ballot and voting on the resolution.
Modification of Class Rights
Under the Companies Law and our articles of association, any amendment, conversion, cancellation, expansion, addition to or other change in the rights, preferences, privileges, restrictions or provisions attached to any particular class of shares issued to shareholders of our company, shall require the written consent of holders of all issued shares of such particular class, or authorization by an ordinary resolution adopted at an extraordinary meeting of such class.
Limitations on the Rights to Own Ordinary Shares in Our Company
None of our memorandum of association, our articles of association or the laws of the State of Israel restrict in any way the ownership or voting of ordinary shares by non-residents, except that shares held by citizens of countries which are in a state of war with Israel will not confer any rights to their holders unless the Minister of Finance consents otherwise.
In addition, pursuant to the Communications Order, so long as we control Bezeq, any state, government corporation or a corporation controlled by a government corporation cannot control our company. Ownership of our shares, directly or indirectly, by a government corporation requires the prior written approval of the Israeli Prime Minister and Israeli Minister of Communications, provided that the government corporation's total direct and indirect holdings in Bezeq does not exceed more than 5% of any type of "means of control" (as such term is described above) of Bezeq. Ownership by a government corporation, directly or indirectly, of 5% or more of Bezeq's outstanding shares or a "significant influence" (as such term is described above) in Bezeq requires the approval of the Prime Minister of Israel and the Israeli Minister of Communications as well as the consent of the Israeli Minister of Defense. A "Hostile State," as such term is defined in the Communications Order, a citizen or resident of a Hostile State, a corporation incorporated in a Hostile State or controlled by a resident or citizen of a Hostile State is not allowed to hold, directly or indirectly, 5% or more or a "significant influence" (as described above) in Bezeq.
Anti-Takeover Provisions; Mergers and Acquisitions
Full Tender Offer. A person wishing to acquire shares, or any class of shares, of a publicly traded Israeli company and who would as a result hold over 90% of the company's issued and outstanding share capital, or a class of shares which are listed, is required by the Companies Law to make a tender offer to all of the company's shareholders for the purchase of all of the remaining issued and outstanding shares of the company, or any class of shares, as the case may be. If (i) less than 5% of the outstanding shares are not tendered in the tender offer and the majority of the offerees who have no personal interest in the acceptance of the tender offer have accepted the offer; or (ii) less than 2% of the outstanding shares are not tendered in the tender offer, all of the shares that the acquirer offered to purchase will be transferred to the acquirer by operation of law. However, the shareholders may petition the court within six months after receipt of the offer to alter the consideration for the acquisition. The Companies Law allows an acquirer to determine in the terms of the offer that offerees who accepted the offer will not be entitled to appraisal rights. If the terms described above for the completion of a tender offer are not met, the acquirer may not acquire additional shares of the company from shareholders who accepted the tender offer if following such acquisition the acquirer would then own over 90% of the company's issued and outstanding share capital.
Special Tender Offer. The Israeli Companies Law provides that an acquisition of shares of a public company be made by means of a special tender offer if as a result of the acquisition the purchaser would hold 25% or more of the voting rights at the company's general meeting, unless one of the exemptions described in the Companies Law are met. This rule does not apply if there is already another shareholder who holds 25% or more of the voting rights at the company's general meeting. Our parent, Internet Gold, currently holds more than 25% of our outstanding ordinary shares as determined in accordance with the Companies Law. Similarly, the Companies Law provides that an acquisition of shares in a public company must be made by means of a tender offer if as a result of the acquisition the purchaser would hold more than 45% of the voting rights of the company, if there is no other shareholder of the company who holds more than 45% of the voting rights in the company. A tender offer is not required in the following circumstances: (i) the purchase was made in a private placement that was approved by the shareholders as a private placement and was meant to grant the purchaser 25% or more of the voting rights of a company in which no other shareholder holds 25% or more of the voting rights, or to grant the purchaser more than 45% of the voting rights of a company in which no other shareholder holds more than 45% of the voting rights, (ii) the purchaser would hold 25% or more of the voting rights after purchasing shares from a person that held 25% or more of the voting rights, or (iii) the purchaser would hold more than 45% of the voting rights after purchasing shares from a person that held more than 45% of the voting rights.
Merger. The Companies Law permits merger transactions if approved by each party's board of directors and, unless certain requirements described under the Companies Law are met, the majority of each party's shares voted on the proposed merger at a shareholders' meeting called on at least 35 days' prior notice. Under the Companies Law, if the approval of a general meeting of the shareholders is required, merger transactions may be approved by holders of a simple majority of the shares present, in person or by proxy, at a general meeting and voting on the transaction. In determining whether the required majority has approved the merger, if shares of the company are held by the other party to the merger, or by any person holding at least 25% of the outstanding voting shares or 25% of the means of appointing directors of the other party to the merger, then a vote against the merger by holders of the majority of the shares present and voting, excluding shares held by the other party or by such person, or anyone acting on behalf of either of them, is sufficient to reject the merger transaction. If the transaction would have been approved but for the exclusion of the votes of certain shareholders as provided above, a court may still approve the merger upon the request of holders of at least 25% of the voting rights of a company, if the court holds that the merger is fair and reasonable, taking into account the value of the parties to the merger and the consideration offered to the shareholders. Upon the request of a creditor of either party to the proposed merger, the court may delay or prevent the merger if it concludes that there exists a reasonable concern that, as a result of the merger, the surviving company will be unable to satisfy the obligations of any of the parties to the merger and the court may also provide instructions to assure the rights of creditors. In addition, a merger may not be completed unless at least 50 days have passed from the date that a proposal for approval of the merger was filed with the Israeli Registrar of Companies and 30 days from the date that shareholder approval of both merging companies was obtained.
Notwithstanding the foregoing, a merger is not subject to shareholders approval of (i) the target company, if it is a wholly-owned subsidiary of the acquiring company and (ii) the acquiring company, if no changes are required to its articles and memorandum of association and it is not issuing to the shareholders of the target company more than 20% of its voting rights and no person will become, as a result of the issuance, a controlling shareholder of the acquiring company, subject to certain limitations relating to the continuing of the votes, at a meeting of the shareholders of a company that is a party to the merger, of any entity or person that is either the other party to the merger or a control person thereof.
Exchange Controls
Israeli laws and regulations do not impose any material foreign exchange restrictions on non-Israeli holders of our ordinary shares. In May 1998, a new "general permit" was issued under the Israeli Currency Control Law, 1978, which removed most of the restrictions that previously existed under such law, and enabled Israeli citizens to freely invest outside of Israel and freely convert Israeli currency into non-Israeli currencies.
Non-residents of Israel who purchase our ordinary shares will be able to convert dividends, if any, thereon, and any amounts payable upon our dissolution, liquidation or winding up, as well as the proceeds of any sale in Israel of our ordinary shares to an Israeli resident, into freely repatriable dollars, at the exchange rate prevailing at the time of conversion, provided that the Israeli income tax has been withheld (or paid) with respect to such amounts or an exemption has been obtained.
Description of Debt and Other Securities
Besides ordinary shares, we may offer debt or other equity securities pursuant to this shelf prospectus. Before we do so, we will include in a supplemental prospectus shelf offering report a summary of the material terms and provisions of any such securities.
3.10 Markets
Our ordinary shares are listed on the NASDAQ Global Select Market and TASE under the symbol "BCOM".
The following table sets forth, for each of the years indicated, the high and low market prices of our ordinary shares on the NASDAQ Global Market (for periods prior to January 1, 2012), the NASDAQ Global Select Market (for periods subsequent to January 1, 2012) and the TASE:
| NASDAQ | Tel Aviv Stock Exchange |
||||
|---|---|---|---|---|---|
| Year | High | Low | High | Low | |
| 2011 | \$ 36.94 | \$ 14.01 | NIS 130.52 | NIS 52.65 | |
| 2012 | \$ 13.42 | \$ 2.16 | NIS 53.86 | NIS 9.07 | |
| 2013 | \$ 21.88 | \$ 3.68 | NIS 76.38 | NIS 13.78 | |
| 2014 | \$ 21.61 | \$ 12.76 | NIS 84.46 | NIS 45.25 | |
| 2015 | \$ 26.99 | \$ 14.08 | NIS 105.00 | NIS 54.48 |
Quarterly Stock Information
The following table sets forth, for each of the full financial quarters in the two most recent full financial years and any subsequent period, the high and low market prices of our ordinary shares on the NASDAQ Global Select Market and the TASE:
| Market | NASDAQ Global Select | Tel Aviv Stock Exchange | ||||
|---|---|---|---|---|---|---|
| High | Low | High | Low | |||
| 2014 | ||||||
| First Quarter | \$ 17.32 | \$ 12.76 | NIS 60.45 | NIS 45.25 | ||
| Second Quarter | \$ 19.71 | \$ 16.70 | NIS 67.79 | NIS 58.57 | ||
| Third Quarter | \$ 21.61 | \$ 17.88 | NIS 74.00 | NIS 61.65 | ||
| Fourth Quarter | \$ 21.09 | \$ 17.05 | NIS 84.46 | NIS 66.17 | ||
| 2015 | ||||||
| First Quarter | \$ 17.75 | \$ 14.08 | NIS 68.52 | NIS 54.48 | ||
| Second Quarter | \$ 17.45 | \$ 14.31 | NIS 69.84 | NIS 54.87 | ||
| Third Quarter | \$ 20.95 | \$ 15.72 | NIS 82.97 | NIS 59.72 | ||
| Fourth Quarter | \$ 26.99 | \$ 19.55 | NIS 105.00 | NIS 74.04 |
| 2016 | ||||
|---|---|---|---|---|
| First Quarter | \$ 31.86 | \$ 23.71 | NIS 116.40 | NIS 92.90 |
| Second Quarter | \$ 31.00 | \$ 21.60 | NIS 110.00 | NIS 84.40 |
| Third Quarter | \$ 25.57 | \$ 23.66 | NIS 98.13 | NIS 88.93 |
Monthly Stock Information
The following table sets forth, for the most recent six months, the high and low market prices of our ordinary shares on the NASDAQ Global Select Market and the TASE:
| NASDAQ Global Select Market |
Tel Aviv Stock Exchange | |||
|---|---|---|---|---|
| High | Low | High | Low | |
| February 2016 | \$28.63 | \$27.00 | NIS 110.00 | NIS 100.40 |
| March 2016 | \$31.86 | \$28.42 | NIS 116.40 | NIS 108.00 |
| April 2016 | \$31.00 | \$28.25 | NIS 108.60 | NIS 105.30 |
| May 2016 | \$28.43 | \$25.95 | NIS 108.80 | NIS 99.07 |
| June 2016 | \$27.66 | \$21.60 | NIS 104.30 | NIS 84.80 |
| July 2016 | \$25.57 | \$23.75 | NIS 98.13 | NIS 92.90 |
| August 2016 | \$25.49 | \$23.66 | NIS 96.59 | NIS 88.93 |
3.11 Plan of Distribution
We may offer and sell our securities in offerings hereunder to or through one or more underwriters, dealers and agents, or directly to purchasers, on a continuous or delayed basis. We will provide the specific plan of distribution for any securities to be offered by us in a supplemental prospectus shelf offering report.
3.12 Expenses
The aggregate amount that we will pay for consulting fees, distribution fees and commitment fees and other commissions and expenses in connection with an offering under this shelf prospectus will be published in a relevant supplemental shelf offering report.
ג- 16
3.13 Where You Can Find More Information
We are subject to the periodic reporting and other informational requirements of the Exchange Act. Under the Exchange Act, we are required to file annual and special reports and other information with the SEC. As a foreign private issuer, we are exempt from the rules under the Exchange Act prescribing the furnishing and content of proxy statements and our officers, directors and principal shareholders are exempt from the reporting and short-swing profit recovery provisions contained in Section 16 of the Exchange Act.
Information filed with the SEC by us can be inspected and copied at the Public Reference Room maintained by the SEC at 100 F Street, N.E., Washington, D.C. 20549. You may also obtain copies of this information by mail from the Public Reference Section of the SEC at prescribed rates. Further information on the operation of the SEC's Public Reference Room in Washington, D.C. can be obtained by calling the SEC at 1-800-SEC-0330.
The SEC also maintains a website that contains reports, proxy and information statements and other information about issuers, such as us, who file electronically with the SEC. The address of that website is http://www.sec.gov.
You can also access our reports filed with the Israel Securities Authority, or ISA, on the MAGNA site, which has an address of www.magna.isa.gov.il.
3.14 Incorporation of Certain Information by Reference
The ISA allows us to "incorporate by reference" into this prospectus the information in documents we file with it on the MAGNA system. Similarly, as an "accelerated filer" we would be permitted to incorporate by reference information in documents we file with the SEC. This means that we can disclose important information to you by referring you to those documents. Each document incorporated by reference is current only as of the date of such document, and the incorporation by reference of such documents shall not create any implication that there has been no change in our affairs since the date thereof or that the information contained therein is current as of any time subsequent to its date. The information incorporated by reference is considered to be a part of this prospectus and should be read with the same care. When we update the information contained in documents that have been incorporated by reference by making future filings with the ISA, the information incorporated by reference in this prospectus is considered to be automatically updated and superseded. In other words, in the case of a conflict or inconsistency between information contained in this prospectus and information incorporated by reference into this prospectus, you should rely on the information contained in the document that was filed later.
We incorporate by reference the documents listed below:
- our annual report on Form 20-F (SEC File No. 001-33773) for the fiscal year ended December 31, 2015 and the description of our ordinary shares set forth therein, filed with the SEC on April 19, 2016 and on the MAGNA system on April 20, 2016.
- our reports of foreign private issuer on Form 6-K (SEC File No. 001-33773) furnished to the SEC on April 21, 2016, April 22, 2016, May 4, 2016, May 9, 2016, May 26, 2016 (7 reports, excluding second paragraph of Exhibit 99.1 attached to fourth chronological report, and solely with respect to the financial results of Exhibit 99.1 attached to seventh chronological report), June 3, 2016, June 8, 2016, June 14, 2016, June 17, 2016, June 20, 2016 (excluding fifth paragraph of Exhibit 99.1 attached thereto), June 28, 2016, July 5, 2016, July 11, 2016, July 18, 2016, July 28, 2016 (the second chronological report, excluding fourth paragraph of Exhibit 99.1 attached thereto), July 29, 2016, August 8, 2016 and their applicable filings on the MAGNA system.
- each subsequent annual report on Form 20-F and each report of foreign private issuer on Form 6-K that indicates that it is being incorporated by reference in each case, that we file with or furnish to the ISA on or after the date on which this shelf prospectus is first filed with the ISA and until the termination or completion of that offering under this shelf
prospectus.
You should rely only on the information contained or incorporated by reference in this shelf prospectus or any supplement thereto. We have not authorized any person to provide you with different information. Is anyone provides you with different or inconsistent information, you should not rely on it. We are not making an offer to sell the securities offered hereunder in any jurisdiction where the offer or sale is not permitted. The information in this shelf prospectus is accurate only as of the date on the front cover of this shelf prospectus or such earlier date that is indicated in this shelf prospectus. Our business, financial condition, results of operation and prospects may have changed since such date.
3.15 Indemnification of Directors and Officers
Under the Companies Law and the Securities Law, a company may, if permitted by its articles of association, indemnify an office holder for any of the following liabilities or expenses that they may incur due to an act performed or failure to act in his or her capacity as the company's office holder, either pursuant to an undertaking given by the company in advance of the act or following the act:
- monetary liability imposed on the office holder in favor of a third party in a judgment, including a settlement or an arbitral award confirmed by a court. However, if a company undertakes to indemnify an office holder in advance of such a liability, the undertaking must be limited to foreseeable events based on the company's activities when the company undertook such indemnification, and to amounts or standards that the board of directors has determined are reasonable under the circumstances;
- reasonable litigation expenses, including attorneys' fees, expended by an office holder as a result of an investigation or proceeding instituted against the office holder by a competent authority, provided that such investigation or proceeding concludes without the filing of an indictment against the office holder and either: no financial liability was imposed on the office holder in lieu of criminal proceedings, or a financial liability was imposed on the office holder in lieu of criminal proceedings with respect to an alleged criminal offense that does not require proof of criminal intent;
- reasonable litigation expenses, including attorneys' fees, expended by the office holder or for which the office holder is charged by a court:
- o in an action brought against the office holder by the company, on behalf of the company or on behalf of a third party,
- o in a criminal action from which the office holder is acquitted, or
- o in a criminal action in which the office holder is convicted of a criminal offense which does not require proof of criminal intent.
- a payment that the office holder is obligated to make to an injured party pursuant to Section 52(54)(a)(1)(a) of the Securities Law, and expenses that the office holder incurred in connection with an administrative proceeding under the Securities Law, including reasonable litigation expenses and attorney fees.
Insurance of Office Holders
A company may, if permitted by its articles of association and subject to the conditions set forth in the Companies Law, obtain insurance for an office holder against liabilities incurred in his or her capacity as an office holder. These liabilities include a breach of duty of care to the company or a third-party, a breach of duty of loyalty and any monetary liability imposed on the office holder in favor of a third-party.
In addition, under the Securities Law, a company may, if permitted by its articles of association, obtain insurance for an office holder against liabilities incurred in his or her capacity as an office holder in connection with a payment that the office holder is obligated to make to an injured party pursuant to Section 52(54)(a)(1)(a) of the Securities Law, and expenses that the office holder incurred in connection with an administrative proceeding under the Securities Law, including reasonable litigation expenses and attorney fees.
Exculpation of Office Holders
Under the Companies Law, a company may, if permitted by its articles of association, also exculpate an office holder from a breach of duty of care in advance of that breach. A company may not exculpate an office holder from a breach of duty of loyalty towards the company or from a breach of duty of care concerning dividend distribution or a purchase of the company's shares by the company or other entities controlled by the company.
Limitations on Exculpation, Insurance and Indemnification
Under the Companies Law, a company may indemnify or insure an office holder against a breach of duty of loyalty only to the extent that the office holder acted in good faith and had reasonable grounds to assume that the action would not prejudice the company. In addition, a company may not indemnify, insure or exculpate an office holder against a breach of duty of care if committed intentionally or recklessly (excluding mere negligence), or committed with the intent to derive an unlawful personal gain, or for a fine or forfeit levied against the office holder in connection with a criminal offense. According to the Israeli Administrative Enforcement Law, a company cannot insure or indemnify an office holder for an administrative enforcement procedure, regarding payments to victims of the infringement or for expenses expended by the officer with respect to certain proceedings held concerning him or her, including reasonable litigation expenses and legal fees.
Pursuant to the Companies Law, exculpation of, procurement of insurance coverage for, and an undertaking to indemnify or indemnification of, our office holders must be approved by our Compensation Committee and our Board of Directors and, if the office holder is a director or the chief executive officer, also by our shareholders.
Our articles of association allow us to insure, indemnify and exempt our office holders to the fullest extent permitted by law, subject to the provisions of the Companies Law and Securities Law. We maintain a directors' and officers' liability insurance policy with liability coverage of up to \$10 million per claim and in the aggregate. We have undertaken to indemnify all of our directors and officers to the extent permitted by law, in an aggregate amount for all directors and officers not to exceed 25% of our equity (on a consolidated basis) in accordance with the our last financial statements published before the actual payment of the indemnity amount, to the extent that their liability is not covered under our directors' and officers' liability insurance policy.
3.16 Legal Matters
Certain legal matters in connection with this offering relating to U.S. law will be passed upon for us by Carter Ledyard & Milburn LLP, New York, New York, our U.S. counsel.
3.17 Experts
The consolidated financial statements as of December 31, 2014 and 2015, and for each of the years in the three-year period ended December 31, 2015, and management's assessment of the effectiveness of internal control over financial reporting as of December 31, 2015, have been incorporated by reference (included) herein in reliance upon the reports of Somekh Chaikin, a member firm of KPMG International, independent registered public accounting firm, incorporated by reference (appearing elsewhere) herein, and upon the authority of said firm as experts in accounting and auditing.
3.18 Enforceability Of Civil Liabilities
We are incorporated in Israel, all of our executive officers and directors and the Israeli experts named herein are non-residents of the United States, and a substantial portion of our assets and the assets of such persons are located outside the United States. For further information regarding enforceability of civil liabilities against us and certain other persons, see the "Risk Factors" section.
פרק 4 - תיאור הזכויות הנלוות למניות החברה
Rights Attached to the Shares of the Company
Below are excerpts of provisions of the Articles of Association of the Company, in accordance with the provisions as numbered therein. You may view the full, valid and binding Articles of the Association of the Company, which was filed as Exhibit 1.2 to the Company's Annual Report on Form 20-F for the year ended December 31, 2012, on the United States Securities and Exchange Comission's website at www.sec.gov and on the Tel-Aviv Stock exchange website at http://maya.tase.co.il/bursa (The: "Articles"). The following is a summary and does not replace the full, valid and binding version of the Company's Articles of Association.
Interpretation
Unless the context otherwise requires, in these Articles the following terms shall have the meaning ascribed to them below:
| The "Board of Directors" | Shall mean the Board of Directors of the Company, appointed in accordance with the provisions of these Articles; |
||
|---|---|---|---|
| The "Companies Law" or the "Law" |
The Companies Law 5759-1999, as amended from time to time; |
||
| The "Communications Law" | The Israeli Communications Law - (Telecommunications and Broadcasting), 1982; |
||
| The "Communications Order" | The Israeli Communications Order (Telecommunication and Broadcasting) (Determination of Essential Service Provided by "BEZEQ" - the Israel Telecommunication Corp., Limited), 5757-1997, issued by the Israeli Minister of Communications, as amended from time to time; |
||
| The "Securities Law" | Shall mean the Securities Law, 5728-1968, as amended from time to time; |
||
| The "Office" | Shall mean the office of the Company, as registered from time to time; |
||
| The "Shareholders Register" | Shall mean the shareholders register that should be maintained in accordance with the Law and the provisions of these Articles; |
||
| "Ordinary Resolution" | A resolution adopted at a general meeting (whether annual or extraordinary) by a majority of the voters (without taking into account abstentions); |
||
| "Bezeq" | "Bezeq" the Israeli Telecommunications Corporation |
| Ltd.; | |
|---|---|
| "Exceptional Holdings (or Excess Holdings)" (Hakhzakot Khorgot) |
Shall have the meaning assigned to such term in the Communications Order, for so long as the Communications Order applies to the Company; |
| "Means of Control" | Any of the following: (1) the right to vote at a General Meeting of the Company; (2) the right to appoint a Director or General Manager of the Company; (3) the right to participate in the profits of the Company; or (4) the right to a share of the remaining assets of the Company after payment of its debts upon liquidation; |
| The "Ministers" - |
Shall have the meaning assigned to such term in the Communications Order; |
| "Principal Shareholder" - |
A Person holding, directly or indirectly, 5% or more of the issued share capital of the Company. |
Share Capital
1. Share Capital
(Article 5 in the Articles)
- (a) The registered share capital of the Company is NIS 5,000,000, divided into 50,000,000 ordinary shares, nominal value NIS 0.1 each (the "Shares" or "Ordinary Shares").
- (b) All Ordinary Shares rank pari passu with one another for all intents and purposes, and each Ordinary Share confers upon its holder the following rights:
- [1] The right to be invited to and participate in the general meetings of shareholders of the Company, and the right to one vote with respect to every Ordinary Share at each general meeting of the Company in which the holder participates;
- [2] The right to receive dividends and bonus shares if and when distributed, pro rata to the nominal value of the Shares, and regardless of any premium paid with respect thereto;
- [3] The right to participate in the distribution of the Company's assets after liquidation, according to such holder's pro rata holding out of the Company's issued and outstanding share capital;
- (c) Notwithstanding the above, the Company may create shares of different classes as provided in the Articles and in accordance with the law.
Alteration of Rights
2. Recapitalization; Change in Rights
(Article 6 in the Articles)
(a) The general meeting of shareholders of the Company may, by an Ordinary Resolution,
and subject to the provisions of Section 46B of the Securities Law and subject to any other applicable law:
[1] Increase its share capital by an amount as may be resolved, by the creation of new shares, under the terms and which will confer the rights as may be resolved. Such a resolution may be adopted regardless of whether all the existing shares have been issued or resolved to have been issued.
Unless otherwise resolved in the resolution of the general meeting to increase the share capital, any new share capital shall be deemed part of the Company's original share capital and shall be subject to the same Articles with regard to calls on shares, liens, transfer, ownership, forfeiture or any other provisions governing the original share capital;
- [2] To consolidate any or all of the share capital of the Company and to divide it into shares of larger nominal value, and if the Shares have no nominal value into a smaller number of Shares, provided however that this does not alter the proportion of the holdings of issued share capital;
- [3] To divide any or all of the share capital of the Company into Shares of smaller nominal value, and if the Shares have no nominal value - into a smaller number of Shares, provided however that this does not alter the proportion of the holdings of issued share capital;
- [4] Change, cancel, convert, extend, add to or otherwise alter the rights, preferences, privileges, restrictions and provisions, whether attached at such time to Company Shares or not;
- [5] Cancel unissued registered share capital, provided that there is no obligation by the Company, including a conditional obligation, to issue any of these Shares;
- [6] To reduce the share capital in the manner, under the terms and subject to the authorizations as required by the Law;
- (b) The creation or issuance of additional Shares of the same class shall not be deemed an abrogation or change of the rights of such particular class of Shares, except as provided in the terms of issuance of such Shares.
- (c) Any amendment, conversion, cancellation, expansion, addition to or other change in the rights, preferences, privileges, restrictions or provisions attached to any particular class of shares issued to shareholders of the Company, shall require the written consent of holders of all issued shares of such particular class, or authorization by an Ordinary Resolution adopted at an Extraordinary Meeting of such class.
- (d) The provisions of the Articles relating to general meetings shall, mutatis mutandis, apply to any general meeting of the holders of a particular class of shares.
- (e) In order to effectuate any such resolution, the Board of Directors may settle any difficulty that may arise, at its discretion. Without derogating from the powers of the Board of Directors as mentioned above, in the event that a capital consolidation creates fractional shares, the Board of Directors may:
- [1] Sell all the fractional shares, and for this purpose appoint a trustee in whose name the share certificates with respect to such fractional shares shall be issued and who will sell these shares, and the proceeds of the sale, less commission and expenses, shall be divided among the entitled shareholders;
- [2] To issue to each shareholder who would have, after the consolidation, been entitled to a fractional share, paid-up shares of the class that such holder had prior to the consolidation, in such number that together with the fractional share, will create one whole share, and such issuance shall be deemed to have been effected immediately prior to the consolidation;
- [3] To determine that the shareholders shall not be entitled to receive a consolidated share with respect to a fractional consolidated share arising from the consolidation of half (or less) the number of shares whose consolidation creates one whole consolidated share, and that they shall be entitled to receive a consolidated share with respect to a fractional consolidated share arising from the consolidation of more than half of the number of shares whose consolidation creates one whole consolidated share;
- [4] In the event that action in accordance with Sections (2) or (3) above requires the issuance of additional shares, the payment with respect to such shares shall be effected in the same manner as the payment of bonus shares. Consolidation and subdivision as stated above shall not be deemed alteration of the rights attached to the consolidated or subdivided shares.
- (f) In the event of consolidation of shares into shares of greater nominal value, the Board of Directors may determine arrangements in order to settle any difficulty that may arise in connection with such consolidation, and in particular may determine which shares shall be consolidated into any particular share, and in the event of consolidation of shares that are owned by several holders, the Board of Directors may determine the arrangements for the sale of the consolidated share, the method of sale and the method in which the net proceeds shall be divided, and to appoint a person who will effect the transfer, and any action carried out by such person shall have full force and effect and may not be challenged.
- (g) The Board of Directors shall be responsible for the securities of the Company and may issue or grant such securities at its discretion, subject to the law and the provisions of the Articles. The Board of Directors may:
- [1] Issue or grant shares and other securities, convertible or exercisable into shares, up to the Company's registered share capital, including the issuance (or otherwise handle them) for cash or non-cash consideration, subject to such conditions and terms, and whether at a premium, nominal value or discount, and at such dates as the Board of Directors may see fit;
- [2] Resolve to issue a series of debentures, as part of the power of the Board of Directors to take loans on behalf of the Company, and up to the limit of such power;
- (h) Unless the Company otherwise resolves in an Ordinary Resolution, in the event that a private placement is offered to a shareholder of the Company, there is no obligation to make a similar offer to all other shareholders of the Company. The Board of Directors may offer securities of the Company to any person at its discretion, whether or not any or all of the Offerees are holders of securities of the Company, and all in accordance with the provisions of the law, the Articles and the agreements by which the Company is bound at the time of such issuance.
- (i) Upon issuance of shares, the Board of Directors may designate different terms for different shareholders with respect to the consideration, the calls on shares and/or the dates of payment.
The Shares
3. Ownership of Shares
(Article 7 in the Articles)
- (a) The Company shall be entitled to treat the person registered as the holder of any share, as the absolute owner thereof, and accordingly, shall not be bound to acknowledge any trust or other right, whether at law or in equity, of any other person to or in respect of such share, except subject to an order by a competent court or as otherwise required by law. The foregoing shall not apply to a nominee company, as defined by law.
- (b) In the event that the Company receives an application to be registered as a shareholder from a person who has shares registered to his name with a member of the stock exchange, and such shares are registered in the Register of Shareholders in the name of a nominee company, the Company shall register such person in the Register of Shareholders subject to all of the following conditions:
- [1] The applicant provided the Company with an undertaking from such stock exchange member to notify the Company of the applicant's new holdings immediately upon performance of any action that alters his holdings in the relevant shares;
- [2] The applicant has provided the Company with a written undertaking to notify the Company of any such actions;
- (c) If two or more persons are registered together as holders of a share, each one of them shall be permitted to give receipts binding all the joint holders for dividends, shares, bonus shares, share certificates, debentures, warrants or other monies or rights received from the Company in connection with the share, even if such dividends, shares, bonus shares, share certificates, debentures, warrants or other monies or rights were delivered to another of the joint holders.
- (d) The Company may at any time pay commission to any person with respect to his conditional or unconditional signature or agreement sign on any share, debenture or series of debentures of the Company or with respect to his conditional or unconditional consent to cause any third party to sign any share, debenture or series of debentures of the Company, all in accordance with the provisions of the law.
(e)
- [1] The executors or administrators of a deceased shareholder, or in the absence of same, his entitled heirs, shall be the only persons recognized by the Company as having any title to or interest in the shares registered in the name of such holder.
- [2] In case of a share jointly registered to several holders, then, subject to the provisions of the law, the surviving joint holders alone shall be recognized by the Company as having any title to or interest in the share.
- [3] A joint holder may transfer his joint-ownership in accordance with the provisions of the Articles.
- [4] In case of a shareholder that is a corporate entity under receivership or liquidation, the Company may recognize the receiver or liquidator of such shareholder as having title or interest in such holder's shares, and in the case of a legally incompetent, the Company may recognize his guardian, or, if such person who is in bankruptcy, his trustee.
(f) Any person becoming entitled to a share in consequence of the death of a shareholder, upon producing evidence of the grant of probate or letters of administration or declaration of succession, demonstrating that such person is entitled to the shares of the deceased shareholder, may elect either to be registered himself as the holder of the share or, subject to Board of Directors approval in accordance with the Articles, transfer such shares.
4. Share Certificates
(Article 8 in the Articles)
- (a) Each share certificate issued by the Company shall bear the seal of the Company and the signatures of two directors, or the signature of the general manager of the Company and one director or such other person as the Board of Directors may designate.
- (b) Each shareholder shall be entitled to receive from the Company, within six months from the date of issuance or registration of transfer, one share certificate in respect of all of the shares registered in his name and fully paid up, or, if approved by the Board of Directors, several share certificates, each for one or more of such shares.
- (c) Each share certificate shall denote the serial numbers of the shares represented thereby and any other detail that the Board of Directors may deem important or that must be denoted in accordance with the law.
- (d) A share certificate denoting two or more persons as joint owners of the shares represented thereby shall be delivered to the person first named on the Register of Shareholders in respect of such joint ownership, and the Company shall not be obligated to issue more than one certificate to all joint holders; a certificate delivered to any one of the joint holders shall be deemed to have been delivered to all of them.
- (e) A share certificate defaced, lost or destroyed may be replaced upon furnishing of evidence to the satisfaction of the Board of Directors, proving such defacement, loss or destruction and subject to the submission to the Company of securities against all possible damages as the Board of Directors may think fit, and all against payment, if imposed.
- (f) The Company may issue share warrants in place of registered shares. Where a share warrant is issued in place of a share registered under a person's name, the share shall be registered in the Register of Shareholders as a bearer share, and the name of the shareholder shall be removed from the Register of Shareholders.
- (g) A shareholder in lawful possession of a share warrant may return the warrant to the Company for the purpose of its cancellation and conversion into a share registered under his name; upon cancellation, the name of the shareholder shall be entered in the Register of Shareholders, noting the number of shares registered under his name.
Transfer and Transmission of Shares
5. Transfer and Transmission of Shares
(Article 9 in the Articles)
(a) No transfer of shares of the Company shall be entered in the Register of Shareholders except subject to one of the alternatives stipulated in Section 299 of the Companies Law, as provided in Article 36(d) herein.
- (b) A deed of transfer with respect to a share of the Company shall be signed by the transferor and the transferee, and the transferor shall be deemed the shareholder as long as the transferee has not been entered in the Register of Shareholders with respect to the transferred share.
- (c) The deed of transfer shall be in the following form or in any form as similar to the following as possible, or in any other form as may be approved by the Board of Directors:
I, ____, of ("Transferor"), in consideration of the sum of NIS , do hereby transfer to the ("Transferee") shares, nominal value NIS each, numbered to , inclusive, of B Communications Ltd.., to hold unto the transferee, his executors, administrators and assigns, subject to the several conditions on which I held the same immediately before the execution hereof; and I the transferee do hereby agree to take the said shares subject to the conditions aforesaid.
As witness our hands, this day of.
Transferor Transferee
Witness Witness
- (d) Together with the deed of transfer, the Company should also receive any other document (including the certificate of the transferred share) as the Board of Directors may require for this purpose. In the event that the transfer is approved, all such documents shall remain with the Company.
- (e) A transfer of shares that have not been fully paid up shall have no effect unless authorized by the Board of Directors. The Board of Directors may, at its absolute discretion and without being required to provide any explanation, withhold its consent to a transfer of shares that have not been fully paid up.
- (f) Every deed of transfer shall be submitted to the Office for registration. Registered deeds of transfer shall remain in the hands of the Company; deeds of transfer that the Board of Directors shall refuse to register due to reasons stipulated in the Articles or by law, shall be returned, upon demand, to the person that submitted them, together with the share certificate (if submitted).
6. Rights Attached to Shares
(Article 10 in the Articles)
In addition to the rights of shareholders as stipulated in Article 5(b) to the Articles, each shareholder of the Company shall be entitled to the following:
- (a) Shareholders shall have the right to inspect the following documents of the Company:
- [1] Minutes of the general meetings;
- [2] The Register of Shareholders and the register of substantial shareholders of the Company;
- [3] The Articles, as amended from time to time;
- [4] Any document which the company is required to file under the Law and under
any law with the Companies Registry or the Securities Authority, available for public inspection at the Companies Registry or the Securities Authority, as the case may be;
- (b) A shareholder shall be entitled to require from the Company inspection of any document in its possession, indicating for what purpose, in event that the document relates to an act or transaction requiring the consent of the general meeting under the provisions of sections 255 and 268 to 275 of the Companies Law.
- (c) The Company may refuse the request of the shareholder if in its opinion the request was not made in good faith or the documents requested contain a commercial secret or a patent, or disclosure of the documents could prejudice the best interest of the Company in some other way.
General Meetings
7. The General Meeting and its Powers
(Article 12 in the Articles)
- (a) Resolutions of the company in respect of the following matters shall be passed by the general meeting:
- [1] Revisions of the Articles, as provided in Article 4 to the Articles;
- [2] Exercise of the powers of the Board of Directors in the event that the Board of Directors is unable to exercise such powers, as provided in Section 52(a) of the Companies Law or as set forth in Section 11(e) to the Articles;
- [3] Appointment of the Company's auditor, the terms under which he shall be retained and termination of his appointment in accordance with the provisions of Article 32 herein;
- [4] Appointment of outside directors in accordance with the provisions of Section 239 of the Companies Law and Article 20(i) to the Articles;
- [5] Approval of actions and transactions requiring approval of the general meeting in accordance with the law;
- [6] Increase or reduction of the registered share capital, as provided in Article 6 to the Articles;
- [7] Merger, in accordance with Section 320(a) of the Companies Law;
- (b) The provisions of the law with respect to the dates on which the general meeting should convene, the method by which it should be convened, the business to be considered at a general meeting, quorum, notices, voting, minutes, etc., shall apply to general meetings, extraordinary meetings and class meetings, unless otherwise expressly stated in the Articles, and in accordance with the provisions of the law.
8. Annual General Meeting
(Article 13 in the Articles)
(a) The Company shall hold an annual general meeting every year no later than on the
ד - 9
expiry of fifteen months from the previous annual general meeting.
- (b) The agenda at an annual general meeting shall include:
- [1] a discussion of the financial reports and of the report of the Board of Directors;
- [2] appointment of directors and setting their remuneration;
- [3] appointment of an auditor;
- [4] any matter included in the agenda by the Board of Directors;
- [5] Any matter that the Board of Directors was requested to include in the agenda by one or more shareholders with at least one percent of the voting rights at the general meeting, provided that it is appropriate to discuss such a matter in the general meeting;
9. Extraordinary Meetings
(Article 14 in the Articles)
- (a) The Board of Directors may resolve to convene an extraordinary general meeting, and shall so convene at the demand of any one of the following:
- [1] two directors or one-quarter of the directors in office;
- [2] one or more shareholders with at least five percent of the issued share capital and at least one percent of the voting rights in the company, or one or more shareholders with at least five percent of the voting rights in the Company.
- (b) The agenda at an extraordinary general meeting shall be fixed by the Board of Directors and shall also include matters in respect of which the convening of the extraordinary general meeting is required under Article 14(a) to the Articles, as well as any matter requested by a shareholder as provided in Article 13(b)(5) to the Articles.
- (c) In the event that the Board of Directors is required to convene an extraordinary meeting as stipulated in Article to the Articles, the Board of Directors shall, within twenty one days from receiving such requirement, call the meeting as stipulated below for a date as will be designated in the notice that will be provided to the shareholders in accordance with Article 15 to the Articles.
10. Notices of General Meetings
(Article 15 in the Articles)
- (a) The Company shall designate the date of record with respect to entitlement to receive notices of general meetings and participate and vote at such meetings, in accordance with the Companies Law and the regulations promulgated thereunder.
- (b) Subject to the provisions of Section 69 of the Companies Law, notice of a general meeting of shareholders shall be provided to all eligible shareholders only by publication in two daily Hebrew language newspapers in Israel that have a reasonablysized readership.
11. Proceedings at the General Meeting
(Article 16 in the Articles)
- (a) The general meeting may discuss any business in accordance with the Law and the Articles, and any matter on the agenda as detailed in the notice calling such meeting.
- (b) The quorum for any shareholders meeting shall include the presence, in person or by proxy, of shareholders holding or representing, in the aggregate, at least one third of the voting rights.
- (c) No business shall be considered or determined at a general meeting, unless the requisite quorum is present within half an hour from the time appointed for the general meeting. If within half an hour from the time appointed for the general meeting a quorum is not present, the general meeting shall stand adjourned to the same day one week thereafter, at the same time and place, or to such other time as designated in the notice for such meeting ("Adjourned Meeting").
- (d) If within half an hour from the time appointed for the Adjourned Meeting a quorum as stipulated in Article 16(b) is not present, any number of shareholders present shall represent a quorum.
- (e) Notwithstanding the provisions of Article 16(d) to the Articles, if a general meeting is convened following demand of shareholders as provided in Article 14(a)(2) to the Articles or in accordance with Section 64 of the Companies Law, the Adjourned Meeting shall take place only if there are present at least the number of shareholders required to convene a meeting as provided in Article 14(a)(2) to the Articles.
- (f) A general meeting in which a quorum is present may resolve to adjourn the meeting or the discussion or the vote on a matter included in the agenda to such other time and place as it may determine; only matters that were on the agenda and in respect of which no resolution was passed shall be discussed at the adjourned meeting.
- (g) If a general meeting is adjourned as stipulated in Article 16(f) to the Articles for more than twenty one days, notices for the adjourned meeting shall be given in accordance with Article 15 to the Articles.
- (h) If a general meeting is adjourned without changing the agenda for no more than 21 days, notices and invitations for the adjourned meeting shall be given as soon as possible and in any event no later than seventy two hours before the time designated for the Adjourned Meeting; such notices and invitations shall be made in accordance with Sections 67 and 69(a) of the Companies Law, mutatis mutandis.
12. Chairman of the General Meeting
(Article 17 in the Articles)
- (a) The general meeting shall be chaired by the chairman of the Board of Directors or by a person that he has appointed in writing for this purpose, whether in general or for a specific meeting.
- (b) If the Board of Directors has no chair or if he is not present and has not appointed a chairman for the meeting, the meeting shall choose one of the directors present to be the chairman of such meeting, and if none of the directors is present, the meeting shall choose one of the participants to chair the meeting.
Voting and Passing Resolutions at General Meetings
13. Voting at the General Meeting
(Article 18 in the Articles)
(a) Subject and without prejudice to the rights or restrictions attached at any given time to any particular class of shares of the Company, each member shall have the right to one vote for each share that confer voting rights which he holds or with respect to which he acts as proxy. A shareholder shall be entitled to participate in and vote at a general meeting, himself or by proxy, subject to presentation to the Company of evidence of ownership as stipulated in the Articles, as of the date of record designated in the notice of the meeting and in accordance with the Companies Law and the regulations promulgated thereunder.
No holder of Ordinary Shares shall be entitled to participate and vote in any General Meeting (or to be counted as part of the quorum thereat): (i) unless all calls and other sums payable by him in respect of his shares in the Company have been paid, except if the allotment conditions of the shares provide otherwise, and/or (ii) in respect of any Exceptional Holdings, and/or in respect of Undisclosed Holdings as set forth in the Articles.
- (b) A corporation that is a shareholder of the Company may, in accordance with a resolution of its directors or any other managing body of such corporation, empower such person as it may designate to represent it at any general meeting. A person designated as mentioned above may, in accordance with the authorization, exercise the same rights that the represented corporation would have been entitled to exercise.
- (c) In case of a shareholder who is a minor, a conservatee, bankrupt or legally incompetent, or in case of a corporation, if the corporation is in receivership or liquidation, such shareholder may vote through its trustees, receivers, natural or legal guardians, as relevant, and these persons may vote themselves or by proxy.
- (d) If two or more persons are registered as joint owners of any share and are present at and participate in a vote, the vote of the senior amongst the joint owners attending and voting shall be taken into account, and the votes of the other joint holders will be disregarded. For this purpose seniority shall be determined by the order in which the names stand on the Register of Shareholders.
- (e) A shareholder may appoint as proxy a person who is not a shareholder of the Company. The instrument appointing a proxy to participate in and vote at a general meeting on behalf of a shareholder, shall be in writing and signed by the appointing shareholder or by his lawful representative appointed in writing, or, where the appointing party is a corporate entity, the document shall bear binding signatures as required in accordance with the articles of association of such corporate entity. If the appointing entity is a corporate entity, certification by an attorney shall be attached to the instrument appointing the proxy, confirming that the proxy was executed in accordance with the articles of association of the corporation.
- (f) A vote made in accordance with the terms of the proxy shall be valid even if before the vote, the person appointing the proxy died or was declared bankrupt or legally incompetent or canceled the proxy or transferred the share with respect to which the proxy was made, or, in case of a corporation, if a receiver or liquidator was appointed for the corporation, all unless written notice of such change was received at the Office at least one day before the meeting, or, if received at the place designated for the
meeting, before the time designated for the meeting.
- (g) A proxy and power of attorney or any other certificate (as relevant) evidencing ownership, or a copy certified by a notary or an attorney, shall be deposited in a place designated for this purpose by the Board of Directors within 48 hours before the general meeting.
- (h) A shareholder holding more than one share shall be entitled to appoint more than one proxy, subject to the following provisions:
- [1] The proxy will specify the class and number of shares with respect to which it is given;
- [2] In the event that the number of share of any given class designated in the proxies made by a single shareholder exceeds the number of shares of such class actually held by such shareholder, all the proxies made by such shareholder with respect to the difference shall be null and void, but the votes with respect to shares held by such shareholder shall remain effective;
- [3] In the event that a shareholder designates a proxy and the proxy instrument does not specify the number or class of shares with respect to which it is given, the proxy shall be deemed to have been made with respect to all of the shares held by such shareholder on the date on which the proxy was deposited with the Company or delivered to the chairman of the meeting, as the case may be. In the event that the proxy is given with respect to a number of shares that is smaller than the number of shares actually held by the appointing shareholder, the shareholder shall be deemed to have abstained from the vote with respect to the balance of the shares, and the proxy shall only be valid with respect to the number of shares stipulated therein.
- (i) The appointment of a proxy (whether for a specific meeting or otherwise) shall be in writing and shall be in the following form or in any other similar form authorized by the Company's Board of Directors, depending on the circumstances:
I, , of , being a shareholder of B Communications Ltd. and entitled to votes, hereby appoint of , or, in his stead, of , as my proxy to attend and vote on my behalf at the (annual/extraordinary/adjourned - as relevant) general meeting of the Company to be held on the day of , and at any adjournment thereof. Neither the holding nor the voting of the shares to which this proxy
relates requires the approval of the "Ministers" pursuant to the Communications Law or the Communications Order and are not considered "Exceptional Holdings", as these terms are defined in the Company's Articles of Association.
- (j) Subject to the provisions of applicable law, the Secretary of the Company may, in his discretion, disqualify proxies, proxy cards, written ballots or any other similar instruments, and notify the shareholder who submitted such proxy, proxy card, written ballot, authorization or similar instrument, in the following cases:
- [1] If the Secretary reasonably suspects that they are forged;
[2] If the Secretary reasonably suspects that they are falsified, or given with respect to shares for which one or more proxies or written ballots have been given and not withdrawn; or
[3] If there is no indication on such proxy, proxy card, written ballot or similar instrument as to whether or not the holdings in the Company or the vote of such shareholder require the approval of the Ministers pursuant to the Communications Law or the Communications Order or are regarded as Exceptional Holdings.
14. Resolutions at the General Meeting
(Article 19 in the Articles)
- (a) Any proposed resolution put to vote at a general meeting shall be decided by a show of hands.
- (b) Resolutions at the general meeting, including with regard to mergers, shall be decided by an ordinary majority, subject to the provisions of the law that require a special majority.
- (c) A declaration by the chairman of the general meeting that a proposed resolution has been unanimously adopted or rejected, or carried by a particular majority, shall constitute a prima facie evidence of the adoption or rejection, respectively, of same resolution.
Dividends, Calls on Shares and Forfeiture
15. Distribution, Dividend Distribution and Bonus Shares
(Article 33 in the Articles)
- (a) Distribution, dividend distribution and issuance of bonus shares shall be made in accordance with the provisions of the Law and the Articles, as follows:
- [1] The Board of Directors may resolve to make a distribution, distribute dividend or issue bonus shares.
- [2] Dividend distribution to shareholders of the Company shall be made to all shareholders pro rata to the nominal value of each share, unless the Articles, as amended, expressly stipulate preferences with respect to dividend distribution.
- [3] The Board of Directors may deduct from any dividend or other moneys payable to any shareholder in respect of a share any and all sums of money then payable by him to the Company in respect of such share, whether or not such payment by the shareholder has already become due.
- (b) The Company may issue redeemable securities, all subject to the provisions of Section 312 of the Law and as will be determined in the terms of issuance of such redeemable securities. The power to issue redeemable securities is conferred upon the Board of Directors.
- (c) The Board of Directors may, as it deems useful and appropriate, appoint trustee or notables to hold in trust dividends, shares or other benefits of any kind uncollected over a certain period of time by holders of bearer shares or by registered shareholders who did not notify the Company of a change of address and did not contact the Company to collect such dividend, shares or benefits, over such period of time. Such notables or trustees shall be appointed in order to liquidate, collect or receive such
dividends, shares and benefits, and execute unissued shares offered to the shareholders, but will not be entitled to transfer, assign or vote the shares with respect to which they were appointed or to transfer or assign any such benefits that they hold in trust. The terms of any such trust or appointment of notables shall stipulate that upon the first demand by a share with respect to which such trustee or notables were appointed, they shall return the relevant share and all the benefits held in trust to such shareholder or to any other person as the Company may instruct. All actions and arrangements effected by such trustees or/and any agreement between them and the Board of Directors shall be binding upon all the relevant parties.
(d) The Board of Directors may from time to time determine the method of payment of dividend or distribution of bonus shares or any other benefits, and the arrangements with respect thereto, both to holders of registered shares and to holders of bearer shares. Without prejudice to the above, the Board may effect payment of any dividend or moneys with respect to shares, by delivery of check by mail to the shareholder's address as entered in the Register of Shareholders.
16. Calls on Shares
(Article 34 in the Articles)
- (a) The Board of Directors may, from time to time, at its discretion or subject to the terms stipulated upon issuance of the relevant shares, make calls upon shareholders to perform payment of any amount of the consideration of their shares not yet paid, provided that such shareholders receive at least fourteen days' notice for each call. Each shareholder shall pay to the Company the amount of every call so made upon him at the time(s) and place(s) designated in such call.
- (b) The joint holders of a share shall be bound jointly and severally to pay all calls and installments in respect thereof.
- (c) The shareholder or the person to whom the share was issued shall owe the Company indexation and interest, as will be determined by the Board of Directors, with respect to any amount not paid when due. Interest will accrue from the date designated for payment and until actual payment. The Board of Directors may waive indexation or interest in full or in part.
- (d) Any sum which by the terms of issuance of a share becomes payable upon issuance or at a fixed date, whether on account of the nominal value of the share or by way of premiums, shall for the purposes of the Articles be deemed to be a call duly made and payable on the date on which by the terms of the issuance the same become payable, and in the event of default, all of the provisions of the Articles with respect to indexation, interest and costs, forfeiture, etc., and all the other relevant provisions hereof shall apply, as if such sum had been payable by virtue of a call duly made and notified.
- (e) The Board of Directors may, if it deems fit, receive from any shareholder willing to advance the same, all or any part of the moneys uncalled and unpaid upon any shares held by him, and may, as may be agreed between the Board of Directors and the shareholder, pay such shareholder, in addition to any dividend (if any) paid with respect to the paid-up portion of the share with respect to which early payment has been made, interest and indexation with respect to such early payment or to any portion thereof exceeding the amount which at any given time has been called.
17. Forfeiture
(Article 35 in the Articles)
- (a) In the event that any shareholder ("Debtor") fails to pay when due any amount payable pursuant to a call in accordance with the provisions of Article 34 to the Articles, the Board of Directors may at any time thereafter resolve that any of the shares with respect to which the Debtor has received the call shall be forfeited.
- (b) In accordance with the provisions of the law, forfeiture of a share shall, cause all rights in the Company and all demands toward it with respect to such share to terminate, ipso facto.
- (c) Forfeiture will extend to any dividend with respect to such share, unpaid before forfeiture, even if already declared.
- (d) A forfeited share may be sold, reallocated or otherwise disposed of on such terms and in such manner as the Board of Directors may deem fit, with or without any amount paid or deemed to have been paid on the share. Until sold, forfeited shares shall be dormant, as defined in Section 308 of the Law.
- (e) In the event that the proceeds of the sale of forfeited shares exceeds the consideration owed by the Debtor, the Debtor shall be entitled to the difference, provided that the amount retained by the Company shall not be less than the full consideration owing by the Debtor plus the cost of the sale.
- (f) The Board of Directors shall be entitled, although not obligated, at any time to collect forfeited money or any part thereof.
Register of Shareholders
18. Register of Shareholders
(Article 36 in the Articles)
- (a) The Company shall maintain a shareholders' register, which will include the following details:
- [1] The name, identity number and address of each shareholder, as provided to the Company;
- [2] The number and class of shares held by each shareholder, noting the nominal value of such shares, and if any amount is still due with respect to any share such amount should also be noted;
- [3] The date of issuance or transfer of the shares to the current shareholder, as relevant;
- [4] If the shares have serial numbers, the Company shall, next to the name of each shareholder, note the serial numbers of his shares;
- (b) In the event that the Company has dormant shares, as stated in Section 308 of the Law, the Register of Shareholders shall also note the number of dormant shares and the date on which they became dormant, all based on the information available to the Company. The Register of Shareholders should also specify the number of shares of the Company that, in accordance with Section 309(b) or 333(b) of the Law, do not
grant voting rights, and the date on which they because shares of this kind.
- (c) In the event that the Company maintains an additional register of shareholders, as provided in Article 37 herein, and in the event that the shares registered there have serial numbers, such serial numbers shall be registered in the additional register.
- (d) The Company shall alter the registration of ownership of shares in the Register of Shareholders as provided in section Article 36(a), in each of the following circumstances:
- [1] a deed of transfer of the share was delivered to the Company, signed by the transferor and the transferee, and any requirements of the Articles, the Communications Law, the Communications Order, so long as the Communications Order applies to the Company, with respect to the transfer of shares have been complied with;
- [2] a court order requiring the amendment of the Register of Shareholders was delivered to the Company;
- [3] it has been proven to the Company that the legal conditions (including under the Articles, the Communications Law and the Communications Order, so long as the Communications Order applies to the Company) for assigning the right have been satisfied;
- [4] any other condition that is sufficient under the Articles, the Communications Law, the Communications Order, so long as the Communications Order applies to the Company, for registration of a change in the Register of Shareholders has been satisfied.
- (e) The Company may close the Register of Shareholders for a reasonable time, not to exceed 30 days, as may be designated by the Board of Directors. The Company shall publish notice of closing the Register of Shareholders at least 7 days ahead of time.
19. Register of Substantial Shareholders and Additional Register of Shareholders outside Israel
(Article 37 in the Articles)
- (a) Reports received by the Company pursuant to the Securities Law relating to the holdings of substantial shareholders of shares in the Company shall be kept in the register of substantial shareholders.
- (b) The Company may keep an additional register of shareholders outside of Israel, subject to the provisions of Section 138 of the Law.
Notices
20. Notices
(Article 42 in the Articles)
(a) Notices and other documents that are to be delivered to any or all of the shareholders can be delivered by the Company to each of the shareholders in person or by duly stamped registered mail, addressed to the registered address of the shareholder in the Register of Shareholders, or by publication of a notice to shareholders or holders of rights of any kind in two daily Hebrew-language newspapers in Israel that have a reasonably-sized readership. Such publication shall be in lieu of personal delivery or delivery by registered mail.
- (b) If two or more persons are joint holders of a share, notices with respect to such share shall be delivered to the person first named on the Register of Shareholders in respect of such joint ownership, and any notice delivered in this manner shall be deemed sufficient. In the alternative, notice can be delivered by publication in two daily Hebrew-language newspapers in Israel that have a reasonably-sized readership.
- (c) Any shareholder registered in the Register of Shareholders, whether according to an address in Israel or abroad, and who from time to time gives the Company notice of an address for notices to be delivered to him, shall be entitled to receive notices in accordance with the Articles at such address. A shareholder shall not be entitled to receive notices at any address except as mentioned above.
- (d) A notice may be given by the Company to the persons entitled to a share in consequence of the death, bankruptcy or legal incompetence of a member, or, in case of a corporation, to the receiver or liquidator, by sending it through the mail by a prepaid letter to the address, if any, supplied for the purpose by the persons claiming to be so entitled, or - until such an address has been so supplied - by giving the notice in any manner in which the same might have been given if the death, bankruptcy, legal incompetence, liquidation or receivership had not occurred
- (e) Any notice or other document delivered or sent by mail shall be deemed to have been received within two business days from dispatch at the post office; proof that a letter containing the notice or document has been addressed to the address according to Company records and has been delivered to the post office with the correct stamp, shall be deemed proof of delivery.
- (f) Subject to the provisions of the law, wherever notice of a certain number of days should be given or where notice should be given that will be effective for a specific period of time, such number of days or period shall be inclusive of the date of delivery.
Liquidation
21. Liquidation
(Article 43 in the Articles)
In the event that the Company is liquidated, whether voluntarily or otherwise, the remaining assets after satisfaction of debt shall be distributed, in accordance with the law and subject to preferred rights that may be attached to shares, according to the following order:
- (a) Repayment of share capital: pari passu, pro rata to the share capital paid up on the nominal value of the shares.
- (b) The remainder: pari passu, pro rata to the share capital paid up on the nominal value of the shares, and for this purpose any uncalled amount shall be deemed to have been paid up, and any amount with respect to which a call has been made and which has not been paid as of the commencement of liquidation, shall not, for the purpose of this distribution, be deemed part of the paid up share capital.
Exceptional Holdings
(Article 44 in the Articles)
22. Exceptional Holdings; Compliance with the Communications Law and the Communications Order
The following provisions of Article 44 to the Articles shall apply for as long as and to the extent that the Communications Order applies to the Company:
- (a) To the extent practicable, the existence of Exceptional Holdings shall be indicated in a Register of Shareholders with a notation that such holdings have been classified as Exceptional Holdings immediately upon the Company's learning of the same. The Company shall send a notice of any Exceptional Holdings to the registered holder of the Exceptional Holdings and to the Ministers immediately upon the Company becoming aware of such event.
- (b) Exceptional Holdings shall be subject to the provisions of the Communications Order applicable to Exceptional Holdings (including, without limitation, Section 8 thereof), and without derogating from the foregoing, shall not entitle the holder thereof to any rights in respect of such holdings, unless and to the extent that the entitlement of holders to rights in respect of such Exceptional Holdings is permissible under the Communications Order. Therefore, any action taken or claim made on the basis of a right deriving from Exceptional Holdings shall have no effect from the time that the Company becomes aware thereof, except and to the extent that the Communications Order provides otherwise.
Without derogating from the foregoing, unless and to the extent that the Communications Order provides otherwise:
- (c) Exceptional Holdings shall not have any voting rights at a General Meeting. Any shareholder participating in a General Meeting shall certify to the Company prior to the vote or, if the shareholder is voting by a proxy or any similar instrument, on such proxy card or similar instrument, as to whether or not his holdings in the Company or his vote require the approval of the Ministers pursuant to the Communications Law and the Communications Order; in the event that any shareholder does not provide such certification as aforesaid, he shall not be entitled to vote at a General Meeting and his vote shall not be counted for quorum purposes.
- (d) No Director shall be appointed, elected or removed by virtue of Exceptional Holdings. In the event a Director is appointed, elected or removed by virtue of Exceptional Holdings, such appointment, election or removal shall have no effect.
- (e) Without derogating from any other provision of the Communications Order, any person holding such number of shares of the Company that requires approval under the Communications Order, shall notify the Company, Bezeq and the Ministers thereof in writing, no later than 48 hours from the date of acquiring such holding.
- (f) The shareholders of the Company shall at all times comply with the terms of the Communications Law and the Communications Order. Nothing herein shall be construed as requiring or permitting the performance of any acts that are inconsistent with the terms of the Communications Law or the Communications Order. If any of the Articles shall be found to be inconsistent with the terms of the Communications Law or the Communications Order, the inconsistent provisions of such article shall be null and void, but the validity, legality or enforceability of provisions of other provisions shall not be affected thereby.
Principal Shareholder
23. Reports by Principal Shareholders
(Article 45 in the Articles)
The following provisions of Article 45 shall apply for as long as the Communications Order applies to the Company:
- (a) Any person who after acquiring, directly or indirectly, shares in the Company becomes a Principal Shareholder, shall, no later than 48 hours after becoming a Principal Shareholder, notify the Company thereof, by written notice specifying the number of the shares held by such Shareholder and the date on which such Shareholder became a Principal Shareholder. The Company shall send a notice to the Ministers of any shareholder becoming a Principal Shareholder within 48 hours of the Company becoming aware of such event
- (b) Any person who ceases to be a Principal Shareholder, shall, no later than 48 hours thereof, notify the Company, in writing, of the date on which such person ceased to be a Principal Shareholder.
- (c) A Principal Shareholder shall notify the Company in writing of any aggregate change in its holdings of shares in the Company amounting to 1% or more of the outstanding share capital of the Company, from the last notice of holdings provided by such Principal Shareholder to the Company, by registered or certified mail, within fourteen (14) days after such change. The Company shall send a notice to the Ministers of such change in the holdings of a Principal Shareholder within 48 hours of the Company becoming aware of such event
- (d) In the event a Principal Shareholder fails to provide the notice required pursuant to the provisions of Article to the Articles 45 ("Undisclosed Holdings"), then until such Principal Shareholder notifies the Company of such Undisclosed Holdings pursuant to the provisions of Article to the Articles 45, the following provisions shall apply to such Undisclosed Holdings:
(i) the Principal Shareholder shall not be entitled to any rights in respect of such shares, and the applicable provisions of Section 8 of the Communications Order with regard to Exceptional Holdings, as may be amended from time to time, shall apply to such Undisclosed Holdings;
(ii) In addition, and without derogating from the foregoing, such Undisclosed Holdings shall be deemed "dormant shares" as defined in Section 308 of the Companies Law.
(e) The provisions of Article 45 shall not derogate from any other legal duty of a Shareholder to disclose its holdings or beneficial ownership of the Company's shares or Means of Control.
פרק 5 - תמורת ההנפקה וייעודה
1 5. תמורת ההנפקה וייעודה
בהתאם להוראות תקנה 25א(א) לתקנות פרטי תשקיף, הפרטים הקבועים בפרק ו' לתקנות פרטי התשקיף, "פרטים שיכללו בתשקיף על השימוש בתמורת ניירות הערך המוצעים", יובאו במסגרת דוח הצעת המדף על-פיו יוצעו ניירות הערך הרלוונטיים.
פרק 6 - פרטים נוספים
6.1 חוות דעת עורך דין
החברה קיבלה את חוות הדעת המשפטית הבאה:
המחלקה המשפטית
28 באוגוסט, 2016
לכבוד
בי קומיוניקיישנס בע"מ (להלן: "החברה")
רחוב דב פרידמן ,2 רמת- גן, 5250301
א.ג.נ,.
הנדון: תשקיף מדף של החברה (להלן: "התשקיף")
לבקשתכם, הרינו לאשר כי הדירקטורים של החברה נתמנו כדין ושמותיהם נכללים בתשקיף.
אנו מסכימים כי חוות דעת זו תיכלל בתשקיף.
בכבוד רב,
עמי ברלב, עורך- דין
המחלקה המשפטית, בי קומיוניקיישנס בע"מ - טלפון: 03-7530928 - פקס: 03-7530927
בון ל רואי החשב ב הסכמה של 6.2 מכתב
K א דואר 609 ין לניום KPMG רבעה ,17 תא 6100601 סומך חייק מגדל המי רחוב האר תל אביב,
וסט 2016 28 באוגו
מ ריון של ניקיישנס בע"מ מן 2 לכבוד הדירקטור בי קומיונ דב פרידמ רמת גן
ג.א.נ,.
ה") ע"מ ("החברה מיוניקיישנס בע מדף של בי קומ ללה בתשקיף מ הסכמה להכל הנדון:
ה, של דוח חדים של תנו בקשר הוגשו על 20 לשנת Securitie ") של החברה כספיים המאו כן לחוות דעת ר ,2015 אשר סגרת דוח F es Act -ב " e תשקיף המדף" חס לדוחות הכ באותו מועד וכ ום 31 בדצמבר פריל 2016 במ המונח "expert קיף המדף ("ת ,2016 המתייח ה שנסתיימה ב של החברה ליו ביום 19 באפ ף, כמשמעות ה ל הפניה בתשק 18 באפריל 6 בר 2015 ולשנה דיווח הכספי ש U.S. Securit בתשקיף המד כללה בדרך של דינו בתאריך יום 31 בדצמב הפנימית על הד ties and Exc רת "experts" מסכימים להכ שנחתם על יד וחדות שלה לי כיבי הבקרה ה change Comm נו תחת הכותר דיעכם כי אנו מ שבון המבקר החברות המאו קטיביות של רכ רה ל- mission ן להכללת שמנ הננו להוד רואה הח החברה וה עם האפק ידי החבר 2015; וכן .of 1933
יירות ערך קיף המדף Securitie יוגש לרשות ני במסגרת תשק ה תחת ה- es החברה, אשר י רך המוצעים ב ב הסכמתנו זה יף המדף של ה ון שניירות הע גשנו את מכת להיכלל בתשקי . בנוסף מכיוו Securi, לא הג יועד אך ורק ל אוגוסט 2016 ities Act of 1 שת החברה ומי פרסם בחודש תחת ה- 1933 ניתן לפי בקש והמיועד להתפ ו ולא ירשמו ת .Act מכתב זה בישראל ו לא נרשמ of 1933
, בכבוד רב
קין בון סומך חיי רואי חשב
המאוגדות ת. פירמות עצמאיות KPMG ישות שוויצרית ה ברשת KPMG של G International Coo תפות ישראלית וחברה operative ("KPMG Int סומך חייקין, שות ב- ("ternational
6.3 אגרת בקשה למתן היתר לפרסום תשקיף
בהתאם להוראות תקנה 4א לתקנות ניירות ערך (אגרת בקשה למתן היתר לפרסום תשקיף), התשנ"ה- ,1995 החברה שילמה לרשות לניירות ערך אגרת בקשה למתן היתר לפרסום תשקיף זה, ואולם, תוספת האגרה תשולם בעד ניירות הערך המוצעים במועד פרסום דוח הצעת המדף (ככל ויפורסם), בסכומים ובמועדים אשר נקבעו בתקנות האמורות.
6.4 עיון במסמכים
עותק מתשקיף זה, מההיתר לפרסומו, מכל חוות דעת או אישור הנזכרים בתשקיף זה וכן עותק ממסמכי ההתאגדות של החברה, ניתנים לעיון באתר ההפצה של רשות ניירות ערך שכתובתו הינה: il.gov.isa.magna.www ובמשרדה הרשום של החברה: רחוב דב פרידמן, 2 רמת- גן, ,5250301 בשעות העבודה הרגילות.
פרק 7 - חתימות
| החברה: | |
|---|---|
| ___ בע"מ: יישנס קומיוניק בי |
_ __ _ ___ |
| רים: הדירקטו |
|
| ___ אלוביץ שאול |
_ __ _ ___ |
| ___ ספיריה דבי |
_ __ _ ___ |
| ___ גבאי בני |
_ __ _ ___ |
| ___ אלוביץ אור |
_ __ _ ___ |
| ___ רוזנטל משה |
_ __ _ ___ |