Bezeq Israel slashes dividend to 70% of profit

Thursday 8 March 2018 | 15:05 CET | News

Bezeq Israel said it will reduce dividend payments to 70 percent of its net profit instead of the 100 percent it has been paying out. In a statement, Bezeq said the next half-year dividend payment will be in accordance with the new policy. 

The company said the capital gains from the sale of the Sakia property will not be distributed in 2018, unless the full consideration for the transaction is received in cash during the year. Bezeq said the board considers it important to maintain the balance between ensuring the company’s financial strength and stability, while retaining the company’s current debt rating (AA) over time, and continuing to provide value to its shareholders through an ongoing distribution of dividends. 

Bezeq’s board has also approved the appointment of two interim directors, Shlomo Rodav and Doron Turgeman. The two were nominated in February by parent company B Communication. The directors will serve until a general shareholders meeting is held later 2018. The two directors were appointed after Bezeq’s controlling shareholder Shaul Elovitch and his son Or Elovitch submitted their resignation letters and stepped down from the board.

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