In the prospectus published by Bank Hapoalim before the offering, it is stated that the agreement between the parties will end in February 2023 and will be automatically extended for periods of approximately 5 years. Last week, Isracard reported that it had reached an understanding with Bank Hapoalim that fundamentally changes the agreements with it and increases the payments it will receive from it to the extent of approximately NIS 200 million per year. The announcement surprised the investor community and caused a 20% drop in Israchart shares, which according to estimates wiped out over NIS 400 million.
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Lahav claims that it is impossible for the most essential agreement of the Isracard company to be changed without an indication and warning being given to the investing public that Bank Hapoalim wants to shorten the period of the agreement on the basis of which Isracard was issued, and to change its terms. .
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Even the corrective report given by Isracard does not dispel the fog surrounding the question of when exactly Isracard knew about Bank Hapoalim’s demand to change the terms of the essential agreement, and why it did not report to the public in time that such a demand had been received and how it intends to deal with it.