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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Month of March, 2000
Koor Industries Ltd.
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(Translation of registrant's name into English)
4 Kaufman Street, Tel-Aviv, 68012, Israel
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
FORM 20-F X FORM 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to rule 12g3-2(b) under the Securities Exchange Act of 1934.
YES NO X
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If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-_____
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
/s/ Shlomo Heller
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By: Shlomo Heller
Title: General Counsel and
Company Secretary
Dated: March 7, 2000
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Exhibit Description
A. Translation from Hebrew to English of an Immediate Report (the
"Report"), which was served on the Israeli Securities Authority,
The Tel-Aviv Stock Exchange Ltd. and the Registrar of Companies,
on March 6, 2000, regarding the signing of a Binding MOU between
Nortel Networks and Koor and its subsidiary Telrad Networks LTD.
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[Koor Letterhead]
EXHIBIT A
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
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Fax: 02-6513940 Fax: 03-5105379
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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
