Keystone Infra Ltd. — M&A Activity 2026

Mar 18, 2026

K

Keystone

This document is a convenience translation into English of an original immediate report in Hebrew. In the event of any discrepancy, inconsistency, or conflict between the Hebrew version and this translation, the Hebrew version shall prevail and be binding in all respects.

18 March 2026

To

Israel Securities Authority

Via Magna

To

Tel Aviv Stock Exchange Ltd.

Via Magna

Dear Sir/Madam,

Re: Signing of an agreement for the sale of 10% of the rights of the Limited Partner in the Partnership Keystone Fund – Egged Partnership Limited Partnership to Meitav

Further to Section 10.3.4 of the Description of the Corporation's Business Chapter in the Company's 2024 Annual Report (Ref. 2025-01-021092), the Company respectfully reports that on 17 March 2026, the Company signed an agreement with Meitav Gemel and Pension Ltd. ("Meitav") for the sale of 10% of the rights of the Limited Partner owned thereby in Keystone Fund – Egged Partnership Limited Partnership (the "Partnership") to Meitav, in consideration for approx. ILS 375 million. The consideration amount reflects an Egged valuation of approx. ILS 6 billion. The transaction agreement includes standard representations and warranties for agreements of this type.

The Partnership owns 91.4% of the issued capital of Egged Transportation Company Ltd. ("Egged").

With the closing of the said sale of rights to Meitav, scheduled for today, the Company will hold approx. 71.1% of the Limited Partner's rights in the Partnership, affording it (indirectly) approx. 64.98% of Egged's shares. To emphasize, the transaction does not include a sale of shares in the General Partner in the Partnership, and the Company remains the holder of 100% of the shares of the General Partner.

As a result of the transaction, the Company expects to record in its financial statements as of 31 December 2025 a pre-tax profit, including from revaluation, of approx. ILS 385 million.

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Sincerely,

Keystone Infra Ltd.