Generation Capital Ltd. — M&A Activity 2026

May 15, 2026

This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

Generation Capital Ltd

GENERATION CAPITAL LTD

Company No.: 515846558

To: Israel Securities Authority

www.isa.gov.il

To: Tel Aviv Stock Exchange Ltd

www.tase.co.il

T053 (Public)

Filed via MAGNA: 15/05/2026

Reference No.: 2026-01-045010

Immediate report on an event or matter that deviates from the corporation's ordinary business

Regulation 36 of the Securities Regulations (Periodic and Immediate Reports), 1970

Results of an offering must be reported on T20 and not on this form.

Report on rating of BONDS or rating of a corporation must be submitted via Form T125

Report on: ☐ Report whose submission has been delayed

Nature of the event: Response to publications in the media – negotiations for the acquisition of Shikun & Binui Energy Ltd

Further to publications in the media, the Fund is honored to update that it is conducting advanced negotiations for the acquisition of 100% of the share capital of Shikun & Binui Energy Ltd ("S&B Energy"), directly or through PowerGen Ltd (alone or together with additional investors), by way of a reverse triangular merger, for total consideration of NIS 4.05 billion, plus NIS 150 million for the time value that will elapse from the date of signing until the date of completion of the transaction. In addition, and against achievement of milestones related to the advancement of existing material projects of S&B Energy within a period of 60 months, there is a possibility that contingent consideration will be paid in an aggregate maximum amount of up to NIS 300 million. The parties are working towards signing a term sheet which includes, inter alia, an undertaking for an exclusivity period, during which the Fund will conduct a due diligence review and a binding agreement between the parties will be formulated. It is clarified that as of this date there is no certainty that a memorandum of understanding will be signed between the parties and a binding agreement will follow, and these are subject, inter alia, to the approval of the competent corporate organs of the parties to the transaction, which have not yet been obtained. The information regarding the completion of a memorandum of understanding and a binding agreement, insofar as they will be signed subsequently, constitutes forward-looking information, within its meaning in the Securities Law, 1968, the realization of which is subject, inter alia, to obtaining approvals and to conditions precedent as will be determined.

1. The date and time on which the corporation first became aware of the event or matter:

☐ 15/05/2026 at 02:00.

☐

Report that was delayed in accordance with Regulation 36(b):

1. If the report was delayed – the reason for which its submission was delayed:

2. On the date _ at _ the impediment to reporting was removed.

3. ☐ The company is a shell company as defined in the TASE Regulations.

Details of the signatories authorized to sign on behalf of the corporation:

	Name of signatory	Position
1	Itay Peled	Chief Financial Officer
2	Baruch Saota	Other
Legal Counsel and Fund Secretary

Explanation: According to Regulation 5 of the Securities Regulations (Periodic and Immediate Reports), 1970, a report submitted pursuant to these Regulations shall be signed by those authorized to sign on behalf of the corporation. The Staff's position on this matter can be found on the ISA website: Click here.

Reference numbers of previous documents on the subject (the mention does not constitute incorporation by reference):

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This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

The corporation's securities are listed for trading on the Tel Aviv Stock Exchange	Form structure update date: 06/08/2024
Short name: Generation Capital
Address: Nissim Aloni10, Tel Aviv6291924 Telephone: 072-2758900, Fax: 072-2758900
Email: GenerationIR@generation.co.il Company website:generationcapital.co.il
Previous names of reporting entity:
Electronic reporter's name: Saota BaruchPosition: Legal Counsel and Company SecretaryEmployer company name: Address: Nissim Aloni10, Tel Aviv6291924Telephone: 072-2758900Fax: 072-2758900Email: BaruchS@generation.co.il