B Communications sells 4.18% of Bezeq's shares

B Communications Ltd. (NASDAQ and TASE: BCOM) said that following its February 1, 2016 update with respect to its ownership interest in Bezeq, The Israel TelecommunicationCorp. Ltd. (“Bezeq”), it sold through its wholly owned subsidiary, B Communications (SP2) Ltd., 115,500,000 Bezeq shares.

The company is expected to receive gross proceeds of NIS 8.50 per share, or NIS 982 million in the aggregate (approximately USD248 million), from the sale on February 1, 2016. The company, through SP2, will retain a 26.34 percent ownership interest in Bezeq, following the closing of the transaction.

According to the terms of the Indenture governing the company´s 7â…œ percent Senior Secured Notes (the “Notes”), the net proceeds from the sale transaction will be deposited in the company´s “Lockbox Account” and will be subject to other customary conditions and covenants relating to asset sales and release of liens on sold assets. In addition, according to the terms of the Indenture, the company must make an offer within 365 days to the holders of the Notes to purchase Notes with the proceeds at a cash offer price equal to 100 percent of the principal amount of the Notes, plus accrued and unpaid interest to the date of purchase.

B Communications is a holding company with a controlling interest in Israel´s largest telecommunications provider, Bezeq, The Israel Telecommunication Corp., Ltd.