Update on Bezeq: Approval for Company Without Israeli Control
Changes in Bezeq’s Control Structure
The Israeli telecommunications giant Bezeq is set to become a company without Israeli control following the approval by Prime Minister Benjamin Netanyahu. This decision allows the controlling shareholder, B-Com, to sell its holdings to both foreign investors and Israeli institutional investors, potentially increasing their stakes in the company by up to 7.5%. Until now, the existing regulations required controlling shareholders to hold at least 15% of the company’s shares, with a minimum of 10% owned by an Israeli citizen.
B-Com’s Current Ownership
Currently, B-Com holds approximately 15.9% of Bezeq’s shares. Since December 2019, B-Com has been predominantly controlled by the American investment firm Searchlight Capital (67%) and its founders, David and Michal Porer (12.6%). The control was acquired during a debt restructuring of Internet Gold, which was previously controlled by Shaul Elovitch, for about 500 million shekels.
Government Actions and Worker Benefits
This pivotal move was approved by the previous government under former Minister of Communications Yoaz Hendel and has now been completed under the current Minister of Communications, Shlomo Karai. This decision builds on previous government approval in June two years ago, which amended the directives governing Bezeq’s operations to facilitate the dispersion of control.
Approximately 5,600 Bezeq employees stand to benefit from this decision, as they are set to receive a total bonus of 75 million shekels. According to agreements between the company’s management and the workers’ union, which have been ratified by the company’s board of directors, changes will also be made to Bezeq’s bylaws. These changes will permit employee representatives to appoint an additional director if the board exceeds 12 members, adapting to the new governance structure without a controlling shareholder.
Conclusion
The transition marks a significant shift in Bezeq’s operational framework, opening the door for increased investment and potential growth within the Israeli communications infrastructure.
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Tags: Bezeq, Israeli telecommunications, B-Com, Searchlight Capital, telecommunications policy, Israeli investment, employee benefits, corporate governance.