EXHIBIT C
KOOR INDUSTRIES LTD.
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OFFICE OF LEGAL COUNSEL
21 Ha'arba'a Street
Tel Aviv 64739
Israel
Tel: 972-3-6238420
Fax: 972-3-6238425
August 31, 2000
The Securities Authority The Tel Aviv Stock The Registrar of Companies
22 Kanfei Nesharim St. Exchange 97 Yafo St.
Jerusalem 95464 54 Ahad Ha'am St. Jerusalem 91007
Tel Aviv 65202
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Fax: 02-6513940 Fax: 03-5105379
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Dear Sirs,
Re: Immediate Report - Koor Industries Ltd.
(No. 53/2000) Company No. 52-001414-3
Further to the immediate report (number 11/2000) dated March 6, 2000, given by
Koor Industries, Ltd (hereinafter: "Koor") and the clarification regarding this
immediate report given on the same day - copies of which are attached hereto -
Koor hereby announces as follows:
This afternoon the transactions which are specified in the mentioned immediate
reports were completed (Closing), based on the principles specified in these
immediate reports.
Yours sincerely,
Shlomo Heller, Adv.
Legal Counsel
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ATTACHMENT
KOOR INDUSTRIES LTD.
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OFFICE OF LEGAL COUNSEL
21 Ha'arba'a Street
Tel Aviv 64739
Israel
Tel: 972-3-6238420
Fax: 972-3-6238425
March 6, 2000
The Securities Authority The Tel Aviv Stock The Registrar of Companies
22 Kanfei Nesharim St. Exchange 97 Yafo St.
Jerusalem 95464 54 Ahad Ha'am St. Jerusalem 91007
Tel Aviv 65202
--------------- --------------- ---------------
Fax: 02-6513940 Fax: 03-5105379
--------------- ---------------
Dear Sirs,
Re: Immediate Report - Koor Industries Ltd. (No.
11/2000) Company No. 52-001414-3
Koor Industries Ltd. hereby announces the following:
This afternoon, a Binding MOU was signed between Nortel Networks, an
International Telecommunication Company from Canada (hereinafter: "Canadian
Nortel"), and Koor and its subsidiary Telrad Networks LTD (hereinafter:
"Telrad". Koor and Telrad will be referred to hereinafter as: "Koor Group").
As part of the above-mentioned Binding MOU, a new Israeli company will be formed
by Canadian Nortel and Koor Group (hereinafter: "Nortel Israel") that will be
controlled by Canadian Nortel and the Koor Group will hold 28% of its share
capital. Upon its formation, Nortel Israel will purchase from Telrad its Public
Switching Business and TXI Systems, together with Telrad's activity in this
field outside of Israel, in consideration of a total sum of 95 million dollars
that will be paid to the Koor Group.
Capital Gain before taxes for the Koor Group from this transaction is
approximately 85 million dollars.
Parallel to that, the Canadian Nortel will sell Koor all its holdings (20%) in
Telrad, for a total sum of 45 million dollars, and Telrad will become a wholly
owned subsidiary of Koor. On the other hand, Koor will invest in Nortel Israel
the total sum of 49 million dollars in share capital and shareholder loans.
The completion of this transaction is dependent on various approvals, including
the approval of the Restrictive Trade Commissioner.
Yours sincerely,
Shlomo Heller, Adv.
Legal Counsel
<PAGE>
KOOR INDUSTRIES LTD.
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OFFICE OF LEGAL COUNSEL
21 Ha'arba'a Street
Tel Aviv 64739
Israel
Tel: 972-3-6238420
Fax: 972-3-6238425
March 6, 2000
The Securities Authority The Tel Aviv Stock The Registrar of Companies
22 Kanfei Nesharim St. Exchange 97 Yafo St.
Jerusalem 95464 54 Ahad Ha'am St. Jerusalem 91007
Tel Aviv 65202
--------------- --------------- ---------------
Fax: 02-6513940 Fax: 03-5105379
--------------- ---------------
Dear Sirs,
Re: Immediate Report - Koor Industries Ltd.
(No. 11/2000) - clarification
Company No. 52-001414-3
Further to Immediate Report No. 11/2000 that was filed on March 6, 2000 by Koor
Industries LTD in the matter of the Nortel deal, I wish to clarify the
following:
1. The business activities that Telrad will sell to Nortel Israel represents
between 40%-50% of Telrad's business activity.
2. Parallel to the Koor Group's investments in Nortel Israel, Nortel Israel will
coordinate the current Israeli activities of the Canadian Nortel, not executed
through Telrad, and will have direct access to Nortel technologies, including
futuristic technologies.
Yours sincerely,
Shlomo Heller, Adv.
Legal Counsel
