Immediate Report Regarding Questioning by Israel Police of Certain Employees of a Foreign Indirect Subsidiary Company of Shikun & Binui

AIRPORT CITY, Israel, February 20, 2018 /PRNewswire/ --

Shikun & Binui Ltd. (TASE: SKBN.TA) has learned that four individuals, which are former and current employees, of a foreign indirect subsidiary company were detained this morning for questioning by the Israeli Police.

In addition, during the morning hours, police investigators visited the offices of a direct subsidiary company, which holds the foreign indirect subsidiary company, in order to obtain documents under a warrant of suspicion of bribery.

It is noted, that the foreign indirect subsidiary company, voluntarily initiated a report to foreign enforcement officials in Europe (where the foreign company resides) in light of claims against the foreign indirect subsidiary company, which were raised by a former employee, with respect to its conduct in Africa.

The claims were raised within the framework of a lawsuit filed against the foreign indirect subsidiary at the Israeli Labor Court. The foreign indirect subsidiary made a report to foreign enforcement officials regarding the claims raised by this former employee, and the steps taken to examine those claims.

The foreign indirect subsidiary company also initiated a thorough investigation with respect to the subsidiary company's conduct in Africa, using an external foreign independent forensic accounting firm. This examination is still ongoing.

It is noted that recently the foreign indirect subsidiary company received a request from the INT department at the World Bank, stating its intention to conduct an audit process in connection with several projects in Kenya, of the indirect subsidiary company, which the World Bank was involved in its financing.

S&B is not aware of any connection between the three events described above.

S&B is unable at this stage to assess the accuracy of the claims and the impact of the above-mentioned events.

About the Shikun & Binui Group 

The Shikun & Binui Group is a global construction and infrastructure company that operates in Israel and internationally in seven segments: 1) infrastructure and construction contracting outside of Israel; 2) infrastructure and construction contracting within Israel; 3) real estate development within Israel; 4) real estate development outside of Israel; 5) renewable energy;and 6) concessions. The Group's activities focus on large, highly complex projects carried out for entities in private and public sectors with a focus on sustainability.

        

        IR Contacts:


        Company


        Inbal Uliansky


        +972-(3)-6301058


        inbal_u@shikunbinui.com


        External IR 


        Ehud Helft


        GK Investor Relations


        +1-617-418-3096


        shikunbinuni@gkir.com

 

This summary announcement was prepared solely for the convenience of the reader and does not replace Shikun & Binui Ltd.'s (hereafter - "the Company") full report. The information contained in this announcement is, by its nature, incomplete. All of its contents are provided as a supplement to the Company's report, and are subject to the declarations therein stated. This announcement includes forecasts, assessments, estimates and other information relating to the Company or its subsidiaries, or to other parties or to future events and matters, the extent of whose realization is not certain and is not under the sole control of the Company (forward-looking information, as defined in the Securities Law-1968). The key facts and data serving as the basis for this information are facts and data, among others, related to the current status of the Company and its businesses, facts and data relating to the current status of the operating segments in which the Company engages in its areas of operation, and other macroeconomic facts and data known to the Company on the preparation date of this presentation.

It is understood that forward-looking information does not constitute a fact and is based solely on subjective assessments. Forward-looking information is uncertain and for the most part, is not under the Company's control. The realization or non-realization of the forward-looking information will be influenced, among others, by the risk factors that characterize the Company's operations, as well as developments in the general environment and external factors that impact the Company's operations. The Company's future results and achievements could differ significantly from those presented in this presentation. The Company is not obligated to update or modify the said forecast or assessment, and is not obligated to update this announcement. This announcement does not constitute an offer to purchase the Company's securities or an invitation to receive such offers. An investment in securities in general, and in the Company in particular, carries risk. One must take into account that past data do not necessarily indicate future performance.

SOURCE Shikun & Binui Ltd.