UK-based Elliott Advisors has sent a letter to Bezeq’s newly appointed chairman Shlomo Rodav, sharing its views on Bezeq’s governance transformation and proposing that the company consider a share buyback programme.
Elliott said its letter highlights the poor corporate governance that persisted at the company over a number of years, leading to an Israel Securities Authority investigation, and a number of board members and executives being placed under house arrest and barred from the company.
Culminating the election of chairman Rodav on 01 May, the company’s refreshed board brings much needed independence and experience, the investor said. According to Elliot, now that the long-overdue governance overhaul has been achieved, Elliott recommends that the company appoint a new CEO; rebuild a constructive regulatory dialogue; develop a coherent new strategy for the business balancing growth with efficiency gains; and review shareholder distribution policy, immediately seeking authorization to buy back shares and consider implementing a buyback programme when appropriate.
Elliot also advised Bezeq to conduct robust domestic and international engagement with shareholders, clearly communicating a plan to create value. Elliott’s letter is the latest in a series of communications with the company this past year, and follows up on recent conversations with Rodav and other members of Bezeq’s board.
