Sources inform ''Globes'' that a court has approved the distribution of a NIS 3 billion dividend by Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ). The dividend will be distributed in NIS 500 million installments every six months in 2011-13, without linkage or interest. The dividend will reduce Bezeq's equity by 64%.
The first installment will be distributed in May 2011, together with the company's regular dividend.
Bezeq controlling shareholder Shaul Elovitch will be the main beneficiary of the dividend. Elovitch's Eurocom Group indirect subsidiary B Communications Ltd. (Nasdaq:BCOM; TASE: BCOM) owns 31.4% of Bezeq. Elovitch's share of the dividend will be NIS 940 million. When his share of Bezeq's previous dividends is added, he will recover almost a third of investment of over NIS 3.7 billion to acquire control of the company.
At the order of the Israel Securities Authority, Bezeq notified the TASE of the results of an assessment of the dividend that it commissioned from Giza Singer Even, which found, "there is no effective restriction to distributing the dividend."
Bezeq's share price rose 0.2% by midday to NIS 10.39, giving a market cap of NIS 27.9 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on March 31, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011