Isrotel Ltd. — M&A Activity 2026

May 11, 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. .

Isrotel Ltd. ("the Company")

May 11, 2026

To

Israel Securities Authority

Via the MAGNA

To

The Tel Aviv Stock Exchange

Via the MAGNA

Dear Sir/Madam,

Re: Engagement in a conditional agreement for the sale of the remaining shares (50%) in the company North Yarkon Tel Aviv Ltd.

The Company is honored to announce that on May 10, 2026, it entered into a conditional agreement with the purchaser Pie Siam Ltd. ("Pie Siam") for the sale of the Company's holdings in the shares of North Yarkon Tel Aviv Ltd. ("North Yarkon"), which holds the Isrotel Port Tower Tel Aviv hotel ("the Hotel") constituting 50% of the issued and paid-up share capital of North Yarkon. Pie Siam holds the remaining 50% of the shares of North Yarkon. Upon completion of the transaction, the purchaser will hold 100% of the shares of North Yarkon.

In consideration for the sale of its holdings in North Yarkon, the purchaser shall pay the Company, at the time of the transaction's completion, a total of approximately NIS 50,000,000 ("the Consideration"). The Consideration is linked to the Consumer Price Index. Completion of the transaction is subject to and conditioned upon the fulfillment of the suspensive conditions customary in transactions of this type, including, among others, the approval of a banking corporation for the transaction and the receipt of approval from the Competition Authority.

According to the Company's estimate, completion of the transaction is expected during the second half of 2026, and upon its completion, it is expected to record a profit from the transaction in its financial statements in the amount of approximately NIS 35,000,000.

The Company and North Yarkon are destined to continue managing the Port Hotel operations even after the completion of the transaction, and for this purpose, at the completion date, a new management agreement regarding the Port Hotel will enter into effect, which will be valid until March 2047.

The information described above in connection with the transaction, including with respect to the completion of the transaction and the expected profit, includes forward-looking information as this term is defined in the Securities Law, 5728-1968. This information includes, among other things, future estimates and evaluations, whose realization is uncertain and is not under the control of the Company. This forward-looking information is based on the Company's management estimates as of the date of this report, and it may not materialize, in whole or in part, or may materialize in a materially different manner than expected, among other things due to the non-fulfillment of the suspensive conditions for the completion of the transaction, non-receipt of the required approvals, or a change in the data on the basis of which the Company's estimates were prepared.

Isrotel Ltd.

By: Moshe Magid

CFO

5/11/2026 | 6:51:02 AM