UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D/A
(Amendment No. 3)
Under the Securities Exchange Act of 1934
Partner Communications Company Ltd.
--------------------------------------------------------------------------------
(Name of Issuer)
Ordinary Shares
--------------------------------------------------------------------------------
(Title of Class of Securities)
70211M109
--------------------------------------------------------------------------------
(CUSIP Number)
Paul Weinberg, Adv.
Elron Electronic Industries Ltd.
The Triangular Tower, 42nd Floor
3 Azrieli Center, Tel Aviv 67023
Israel
Tel: +972 3 6075555
--------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
April, 20, 2005
--------------------------------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss.240.13d-1(e), 240.13d-1(f) or 249.13d-1(g), check the
following box. [_]
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See ss.240.13d-7 for other
parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
Page 1 of 47 pages
SCHEDULE 13D
CUSIP NO. 70211M109
--------------------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only)
Elbit Ltd.
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b) [_]
--------------------------------------------------------------------------------
3. SEC Use only
--------------------------------------------------------------------------------
4. Source of funds (See Instructions)
Not Applicable
--------------------------------------------------------------------------------
5. Check if disclosure of Legal Proceedings Is Required Pursuant to Items 2(d)
or 2(e) [_]
--------------------------------------------------------------------------------
6. Citizenship or Place of Organization
Israel
--------------------------------------------------------------------------------
7. Sole Voting Power
0
Number of -------------------------------------------------------------
Shares 8. Shared Voting Power
Beneficially 3,091,361
Owned by -------------------------------------------------------------
Each Reporting 9. Sole Dispositive Power
Person 0
With: -------------------------------------------------------------
10. Shared Dispositive Power
3,091,361
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
3,091,361
--------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) [_]
--------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11)
2.0%
--------------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions)
CO
--------------------------------------------------------------------------------
Page 2 of 47 pages
SCHEDULE 13D
CUSIP NO. 70211M109
--------------------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only)
Elron Electronic Industries Ltd.
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b) [_]
--------------------------------------------------------------------------------
3. SEC Use only
--------------------------------------------------------------------------------
4. Source of funds (See Instructions)
Not Applicable
--------------------------------------------------------------------------------
5. Check if disclosure of Legal Proceedings Is Required Pursuant to Items 2(d)
or 2(e) [_]
--------------------------------------------------------------------------------
6. Citizenship or Place of Organization
Israel
--------------------------------------------------------------------------------
7. Sole Voting Power
0
Number of -------------------------------------------------------------
Shares 8. Shared Voting Power
Beneficially 3,091,361
Owned by -------------------------------------------------------------
Each Reporting 9. Sole Dispositive Power
Person 0
With: -------------------------------------------------------------
10. Shared Dispositive Power
3,091,361
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
3,091,361
--------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) [_]
--------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11)
2.0%
--------------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions)
CO
--------------------------------------------------------------------------------
Page 3 of 47 pages
SCHEDULE 13D
CUSIP NO. 70211M109
--------------------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only)
Discount Investment Corporation Ltd.
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b) [_]
--------------------------------------------------------------------------------
3. SEC Use only
--------------------------------------------------------------------------------
4. Source of funds (See Instructions)
Not Applicable
--------------------------------------------------------------------------------
5. Check if disclosure of Legal Proceedings Is Required Pursuant to Items 2(d)
or 2(e) [X]
--------------------------------------------------------------------------------
6. Citizenship or Place of Organization
Israel
--------------------------------------------------------------------------------
7. Sole Voting Power
0
Number of -------------------------------------------------------------
Shares 8. Shared Voting Power
Beneficially 3,091,361
Owned by -------------------------------------------------------------
Each Reporting 9. Sole Dispositive Power
Person 0
With: -------------------------------------------------------------
10. Shared Dispositive Power
3,091,361
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
3,091,361
--------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) [_]
--------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11)
2.0%
--------------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions)
CO
--------------------------------------------------------------------------------
Page 4 of 47 pages
SCHEDULE 13D
CUSIP NO. 70211M109
--------------------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only)
IDB Development Corporation Ltd.
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b) [_]
--------------------------------------------------------------------------------
3. SEC Use only
--------------------------------------------------------------------------------
4. Source of funds (See Instructions)
Not Applicable
--------------------------------------------------------------------------------
5. Check if disclosure of Legal Proceedings Is Required Pursuant to Items 2(d)
or 2(e) [_]
--------------------------------------------------------------------------------
6. Citizenship or Place of Organization
Israel
--------------------------------------------------------------------------------
7. Sole Voting Power
0
Number of -------------------------------------------------------------
Shares 8. Shared Voting Power
Beneficially 3,091,361
Owned by -------------------------------------------------------------
Each Reporting 9. Sole Dispositive Power
Person 0
With: -------------------------------------------------------------
10. Shared Dispositive Power
3,091,361
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
3,091,361
--------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) [_]
--------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11)
2.0%
--------------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions)
CO
--------------------------------------------------------------------------------
Page 5 of 47 pages
SCHEDULE 13D
CUSIP NO. 70211M109
--------------------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only)
IDB Holding Corporation Ltd.
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b) [_]
--------------------------------------------------------------------------------
3. SEC Use only
--------------------------------------------------------------------------------
4. Source of funds (See Instructions)
Not Applicable
--------------------------------------------------------------------------------
5. Check if disclosure of Legal Proceedings Is Required Pursuant to Items 2(d)
or 2(e) [_]
--------------------------------------------------------------------------------
6. Citizenship or Place of Organization
Israel
--------------------------------------------------------------------------------
7. Sole Voting Power
0
Number of -------------------------------------------------------------
Shares 8. Shared Voting Power
Beneficially 3,091,361
Owned by -------------------------------------------------------------
Each Reporting 9. Sole Dispositive Power
Person 0
With: -------------------------------------------------------------
10. Shared Dispositive Power
3,091,361
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
3,091,361
--------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) [_]
--------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11)
2.0%
--------------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions)
CO
--------------------------------------------------------------------------------
Page 6 of 47 pages
SCHEDULE 13D
CUSIP NO. 70211M109
--------------------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only)
Nochi Dankner
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b) [_]
--------------------------------------------------------------------------------
3. SEC Use only
--------------------------------------------------------------------------------
4. Source of funds (See Instructions)
Not Applicable
--------------------------------------------------------------------------------
5. Check if disclosure of Legal Proceedings Is Required Pursuant to Items 2(d)
or 2(e) [_]
--------------------------------------------------------------------------------
6. Citizenship or Place of Organization
Israel
--------------------------------------------------------------------------------
7. Sole Voting Power
0
Number of -------------------------------------------------------------
Shares 8. Shared Voting Power
Beneficially 3,091,361
Owned by -------------------------------------------------------------
Each Reporting 9. Sole Dispositive Power
Person 0
With: -------------------------------------------------------------
10. Shared Dispositive Power
3,091,361
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
3,091,361
--------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) [_]
--------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11)
2.0%
--------------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions)
IN
--------------------------------------------------------------------------------
Page 7 of 47 pages
SCHEDULE 13D
CUSIP NO. 70211M109
--------------------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only)
Shelly Bergman
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b) [_]
--------------------------------------------------------------------------------
3. SEC Use only
--------------------------------------------------------------------------------
4. Source of funds (See Instructions)
Not Applicable
--------------------------------------------------------------------------------
5. Check if disclosure of Legal Proceedings Is Required Pursuant to Items 2(d)
or 2(e) [_]
--------------------------------------------------------------------------------
6. Citizenship or Place of Organization
Israel
--------------------------------------------------------------------------------
7. Sole Voting Power
0
Number of -------------------------------------------------------------
Shares 8. Shared Voting Power
Beneficially 3,091,361
Owned by -------------------------------------------------------------
Each Reporting 9. Sole Dispositive Power
Person 0
With: -------------------------------------------------------------
10. Shared Dispositive Power
3,091,361
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
3,091,361
--------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) [_]
--------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11)
2.0%
--------------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions)
IN
--------------------------------------------------------------------------------
Page 8 of 47 pages
SCHEDULE 13D
CUSIP NO. 70211M109
--------------------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only)
Ruth Manor
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b) [_]
--------------------------------------------------------------------------------
3. SEC Use only
--------------------------------------------------------------------------------
4. Source of funds (See Instructions)
Not Applicable
--------------------------------------------------------------------------------
5. Check if disclosure of Legal Proceedings Is Required Pursuant to Items 2(d)
or 2(e) [_]
--------------------------------------------------------------------------------
6. Citizenship or Place of Organization
Israel
--------------------------------------------------------------------------------
7. Sole Voting Power
0
Number of -------------------------------------------------------------
Shares 8. Shared Voting Power
Beneficially 3,091,361
Owned by -------------------------------------------------------------
Each Reporting 9. Sole Dispositive Power
Person 0
With: -------------------------------------------------------------
10. Shared Dispositive Power
3,091,361
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
3,091,361
--------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) [_]
--------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11)
2.0%
--------------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions)
IN
--------------------------------------------------------------------------------
Page 9 of 47 pages
SCHEDULE 13D
CUSIP NO. 70211M109
--------------------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only)
Avraham Livnat
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [X]
(b) [_]
--------------------------------------------------------------------------------
3. SEC Use only
--------------------------------------------------------------------------------
4. Source of funds (See Instructions)
Not Applicable
--------------------------------------------------------------------------------
5. Check if disclosure of Legal Proceedings Is Required Pursuant to Items 2(d)
or 2(e) [_]
--------------------------------------------------------------------------------
6. Citizenship or Place of Organization
Israel
--------------------------------------------------------------------------------
7. Sole Voting Power
0
Number of -------------------------------------------------------------
Shares 8. Shared Voting Power
Beneficially 3,091,361
Owned by -------------------------------------------------------------
Each Reporting 9. Sole Dispositive Power
Person 0
With: -------------------------------------------------------------
10. Shared Dispositive Power
3,091,361
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
3,091,361
--------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) [_]
--------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11)
2.0%
--------------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions)
IN
--------------------------------------------------------------------------------
Page 10 of 47 pages
This Amendment No.3 on Schedule 13D amends the Statement on Schedule 13D, as
amended, previously filed with the Securities and Exchange Commission by the
Reporting Persons ("Original Filing") with respect to the Ordinary Shares, par
value New Israeli Shekel 0.01 per share, of Partner Communications Company Ltd.
("Issuer"). This Amendment No. 3 on Schedule 13D/A (the "Amendment") supplements
and amends the Original Filing to the extent specified herein. Capitalized terms
used but not defined in this Amendment have the meanings given to them in the
Original Filing.
As of April 20, 2004, the Reporting Persons ceased to be the beneficial
owners of more than 5% of Ordinary Shares. Accordingly, this is the Reporting
Persons' final amendment to the Original 13D and is an exit filing.
The following amends and supplements Items 2, 4, 5, 6 and 7 of the Original
Filing.
ITEM 2. IDENTITY AND BACKGROUND.
(a), (b) and (c): The Reporting Persons.
As of April 20, 2005:
IDB Holding owned approximately 64.4% of the outstanding shares of IDB
Development.
The name, citizenship, residence or business address and present principal
occupation of the directors and executive officers of (i) Elbit, (ii) Elron,
(iii) DIC, (iv) IDB Development and (v) IDB Holding are set forth in Schedules
A, B, C, D and E attached hereto, respectively, and incorporated herein by
reference. These Schedules replace Schedules A, B, C, D and E previously
attached to the Original Filing.
(d) None of the Reporting Persons or, to the knowledge of the Reporting
Persons, any director or executive officer named in Schedules A, B, C, D and E
to this Amendment, has, during the last five years, been convicted in any
criminal proceeding, excluding traffic violations and similar misdemeanors,
except for DIC as set forth in the Original Filing (Amendment No. 2, dated March
1, 2005).
(e) None of the Reporting Persons or, to the knowledge of the Reporting
Persons, any director or executive officer named in Schedules A, B, C, D and E
to this Amendment, has, during the last five years, been a party to a civil
proceeding of a judicial or administrative body of competent jurisdiction which
as a result of such proceeding was or is subject to a judgment, decree or final
order enjoining future violations of, or prohibiting or mandating activities
subject to, Federal or state securities laws or finding any violation with
respect to such laws.
ITEM 4. PURPOSE OF THE TRANSACTION.
Item 4 is hereby supplemented and restated as follows:
Page 11 of 47 pages
On February 7, 2005, Elbit, Polar Communications Ltd. ("Polar") and Eurocom
Communications Ltd. ("Eurocom"), offered to sell all of their Ordinary Shares to
the Issuer (the "Buyback") and granted Matav Investments Ltd. ("Matav") an
option to participate in the Buyback. On the same date, such shareholders
entered in an agreement with Hutchison Telecommunications International
(Netherlands) B.V. ("Hutchison BV") that, among other things, sets forth terms
and conditions for the sale of Ordinary Shares by such shareholders in the event
that the Buyback did not occur under certain circumstances (the "Fallback
Arrangement").
On April 18, 2005, Matav exercised its option to participate in the
Buyback. On April 20, 2005, the Buyback was completed, pursuant to which the
Issuer purchased a total of 33,317,932 Ordinary Shares at a per share price of
NIS32.2216 (US$7.37, based on an exchange rate on April 20, 2005 of NIS 4.371
per US$1.00 as published by the Bank of Israel). Since the Buyback was
successfully completed, no Ordinary Shares were sold pursuant to the Fallback
Arrangement. Prior to the closing of the Buyback, the Issuer completed a
refinancing of its credit facility, pursuant to which, among other things, the
pledges on the Ordinary Shares of the Israeli Shareholders (as defined below) in
favor of the Issuer's lending banks were released.
Pursuant to the Fallback Arrangement, on April 20, 2005, Elbit, Polar,
Eurocom, and Matav (collectively, the "Israeli Shareholders") and Tapuz Cellular
Systems Ltd., an affiliate of Eurocom, together with Hutchison B.V. and Advent
Investments Pte Limited ("Advent"), an affiliate of Hutchison B.V., entered into
a Restatement of the Relationship Agreement (the "Restated Relationship
Agreement"). In addition, on April 20, 2005, the Israeli Shareholders entered
into a Shareholders Agreement (the "Shareholders Agreement"). The Restated
Relationship Agreement and the Shareholders Agreement are summarized in Item 6
below.
The purpose of the Buyback was to enable the Israeli Shareholders to
realize their respective investments in the Issuer, which were made upon the
founding of the Issuer in 1997. The purpose of the Restated Relationship
Agreement and the Shareholders Agreement is to regulate the rights and
obligations between the Israeli Shareholders and Hutchison B.V. and Advent, and
among the Israeli Shareholders themselves, respectively, following the closing
of the Buyback, all in accordance with the Issuer's license (the "License")
issued by the Israeli Ministry of Communications.
Except as set forth in Item 6 below, none of the Reporting Persons, nor, to the
best of their knowledge, any of their respective directors or executive
officers, has any present plans or proposals which relate to or would result in
any of the actions described in subsections (a) through (j) of Item 4 of the
Schedule 13D rules.
Item 5. Interest in Securities of the Issuer.
Item 5(a), (b), (c) and (d) are hereby amended and restated as follows:
(a) See Rows 11 and 13 of the cover page of each Reporting Person for the
aggregate number and percentage of Ordinary Shares beneficially owned by such
Reporting Person. As a result of the closing of the Buyback and the signing of
the Restated Relationship Agreement, the Reporting Persons are no longer deemed
to be part of a group with the other Israeli Shareholders in respect of the
Ordinary Shares.
Page 12 of 47 pages
(b) As of April 20, 2005, Elbit is the direct holder of 3,091,361 or
approximately 2% of the Ordinary Shares. Each of the Reporting Persons is deemed
to share the power to vote and dispose of such Ordinary Shares.
As of April 20, 2005, upon the closing of the Buyback, there were
151,353,447 Ordinary Shares outstanding, based on information provided by the
Issuer.
(c) Information provided to the Reporting Persons indicates that the
executive officers and directors of IDB Holding, IDB Development, DIC, Elron and
Elbit did not own as of April 20, 2005 any Ordinary Shares (including Ordinary
Shares that may be acquired pursuant to options to purchase such shares from the
Issuer) except as described in Schedules A and B hereto. According to the
information provided to the Reporting Persons, none of such executive officers
and directors purchased or sold any Ordinary Shares during the last 60 days
prior to April 20, 2005.
(d) On April 20, 2005, the Reporting Persons ceased to the beneficial owner
of more than 5% of the Ordinary Shares.
(e) Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF
THE ISSUER.
Item 6 is hereby amended and restated as follows:
RESTATEMENT OF RELATIONSHIP AGREEMENT
On April 20, 2005, in connection with the completion of the Buyback and
pursuant to the Fallback Arrangement, the Israeli Shareholders, together with
Advent and Hutchison B.V., entered into the Restated Relationship Agreement,
which replaced the Relationship Agreement dated October 10, 1999 among the
parties.
The Restated Relationship Agreement requires the Israeli Shareholders,
severally but not jointly, based on their respective holdings in the Issuer as
of April 20, 2005, to hold a sufficient number of Ordinary Shares to comply with
the minimum aggregate holdings by Israeli entities required under the License
and the Issuer's Articles of Association (the "Required Israeli Percentage").
The Required Israeli Percentage is currently 5% of the outstanding share capital
of the Issuer. The number of Ordinary Shares required to be held by the Israeli
Shareholders to maintain the Required Israeli Percentage is calculated based on
the number of Ordinary Shares outstanding from time to time up to a maximum of
160,922,344 Ordinary Shares outstanding, as adjusted to reflect stock splits,
stock dividends and similar changes that apply to all the Ordinary Shares.
The Restated Relationship Agreement also requires the Israeli Shareholders
to transfer such Ordinary Shares that are subject to the holding requirement of
Required Israeli Percentage (the "Restricted Shares") only in accordance with
the transfer limitations provided by the License and the Issuer's Articles of
Association.
Page 13 of 47 pages
In addition, pursuant to the Restated Relationship Agreement, Hutchison
B.V. undertook to hold (together with its affiliates), such number of Ordinary
as necessary to comply with the minimum founders percentage required under
License (the "Required Founders Percentage"), which percentage is currently 26%
of the outstanding share capital of the Issuer, less the Required Israeli
Percentage. Hutchison B.V. and Advent also undertook to vote their Ordinary
Shares to ensure that a majority of the directors of the Issuer are Israeli
citizens and residents, to the extent that applicable law (including the License
and the Issuer's Articles of Association) so requires, and the Israeli
Shareholders undertook to appoint and retain the number of Israeli directors of
the Issuer that are required pursuant to applicable law (including the License
and the Issuer's Articles of Association) to be appointed and retained by
Israeli Shareholders (the "Israeli Director(s)"). The License currently requires
that at least 10% of the Issuer's directors be Israeli Directors, but one
Israeli Director is sufficient so long as there are fewer than 15 directors.
Based on the current size of the Issuer's Board of Directors, which is comprised
of 13 directors, one Israeli Director is currently required.
SHAREHOLDERS AGREEMENT
On April 20, 2005, the Israeli Shareholders also entered into the
Shareholders Agreement. The Shareholders Agreement sets forth the mechanism for
appointing the Israeli Director(s). Specifically, the Israeli Director(s) will
be appointed in rotation as follows:
(i) Commencing on the date of the closing of the Buyback, and for a
period of one year thereafter (the "Elbit Nominee Term"), one Israeli
Director will be nominated by Elbit.
(ii) At the expiration of the Elbit Nominee Term and for a period of
one year thereafter (the "Eurocom Nominee Term"), one Israeli Director will
be nominated by Eurocom.
(iii) At the expiration of the Eurocom Nominee Term and for a period
of one year thereafter (the "Matav Nominee Term"), one Israeli Director
will be nominated by Matav.
(iv) At the expiration of the Matav Nominee Term, a new rotation cycle
will commence in the manner described above. Such rotation cycle will be
automatically renewed for so long as the Issuer's License or Articles of
Association requires Israeli Director(s).
(v) Notwithstanding the foregoing, if the Israeli Shareholders shall
be required to appoint more than one Israeli Director, then each additional
Israeli Director will be appointed by the next party in the foregoing
rotation, such that no party will be entitled to nominate more than one
Israeli Director, except to the extent that the number of Israeli Directors
exceeds the number of parties entitled to appoint Israeli Directors.
In addition, pursuant to the Shareholders Agreement, the Israeli
Shareholders undertook, severally and not jointly, based on their respective
holdings in the Issuer as of April 20, 2005, to hold a sufficient number of
Ordinary Shares to comply with the Required Israeli Percentage, up to a maximum
of 160,922,344 Ordinary Shares outstanding.
Page 14 of 47 pages
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Schedules A, Name, citizenship, residence or business address and present principal occupation of the
B, C, D and - directors and executive officers of (i) Elbit, (ii) Elron, (iii) DIC, (iv) IDB Development and
E (v) IDB Holding.
Exhibit 1 Restatement of the Relationship Agreement dated April 20, 2005, by and among Advent
Investments Pte Ltd, Hutchison Telecommunications International (Netherlands) BV, Matav Cable
Systems Media Ltd., Matav Investments Ltd., Elbit Ltd., Eurocom Communications Ltd., Polar
Communications Ltd. and Tapuz Cellular Systems Ltd.
Exhibit 2 Shareholders Agreement dated April 20, 2005, by and among Elbit Ltd., Eurocom Communications
Ltd., Polar Communications Ltd., and Matav Cable Systems Media Ltd. and Matav Investments Ltd.
SIGNATURE
After reasonable inquiry and to the best of our knowledge and belief, the
undersigned certify that the information set forth in this Amendment on Schedule
13D is true, complete and correct.
Date: May 16, 2005
ELBIT LTD.
ELRON ELECTRONIC INDUSTRIES LTD.
DISCOUNT INVESTMENT CORPORATION LTD.
IDB DEVELOPMENT CORPORATION LTD.
IDB HOLDING CORPORATION LTD.
NOCHI DANKNER
SHELLY BERGMAN
RUTH MANOR
AVRAHAM LIVNAT
BY: IDB HOLDING CORPORATION LTD.
(signed)
BY: ______________________________
Haim Tabouch and Arthur Caplan, authorized signatories of
IDB Holding Corporation Ltd., for itself and on behalf of
Elbit Ltd., Elron Electronic Industries Ltd., Discount
Investment Corporation Ltd., IDB Development Corporation
Ltd., Nochi Dankner, Shelly Bergman, Ruth Manor and Avraham
Livnat, pursuant to agreements annexed to the Original
Filing as Exhibits 5 through 12.
Page 15 of 47 pages