YEHUD, Israel, Dec. 9, 2020 /PRNewswire/ -- Magal Security
Systems, Ltd. (NASDAQ: MAGS), a leading international
provider of comprehensive physical, video, and access control
security products and solutions, as well as critical site
management, announced today that the Board of Directors has
declared a cash distribution to shareholders in the amount of
$1.079 per share (approximately
$25 million in the aggregate),
following the receipt of court approval in Israel. The cash distribution will be paid in
US$ on December 28, 2020 to
shareholders of record on December 17,
2020.
Magal continues to win new business and invest in their
industry-leading technology while remaining net income positive
year-to-date, despite the global impact of COVID. The decision to
return cash to shareholders reflects the Company's confidence in
its performance and the long-term opportunity for their business,
supported by a robust and debt-free balance sheet
In accordance with Israeli tax law, Magal will withhold 25% of
the gross amount of the cash distribution paid to shareholders.
Magal intends to file a request for a ruling from the Israel Tax
Authority to enable shareholders entitled to an exemption and/or a
lower withholding tax rate with respect to the cash distribution to
benefit from such lower rates. For that purpose, Magal intends to
appoint IBI Trust Management as paying agent to act in accordance
with the Israeli Tax Ordinance requirements. A shareholder who is
subject to a lower tax rate whether as a resident of a country with
which Israel has a treaty for the
avoidance of double taxation or for any other reason may contact
the paying agent to inquire about such shareholder's eligibility to
a lower tax rate. Such shareholder may submit to the paying agent
the documentation as will be specified in the instructions letter
which, following receipt of the tax ruling from the Israeli Tax
Authority (if received), will be posted on Magal's website under
the "Investors Relations" tab. Subject to complying with the
applicable requirements and submitting all the required documents,
the paying agent will transfer the tax amount difference to the
shareholder's bank account in the manner specified in the
instructions letter. The paying agent contact details are
IBI-CM@IBI.co.il, telephone: +972-50-620-9410, 9 Ahad Ha'am St.,
Tel-Aviv, Israel.
About Magal Security Systems Ltd.
Magal is a leading international provider of comprehensive
physical, video and access control security products and solutions,
as well as site management. Over the past 45 years, Magal has
delivered its products as well as tailor-made security solutions
and turnkey projects to hundreds of satisfied customers in over 80
countries under some of the most challenging conditions. Magal
offers comprehensive integrated solutions for critical sites,
managed by Fortis – our cutting-edge physical security information
management system (PSIM). The solutions leverage our broad
portfolio of home-grown PIDS (Perimeter Intrusion Detection
Systems), Symphony – our advanced VMS (Video Management Software)
with native IVA (Intelligent Video Analytics) security
solutions.
Forward Looking Statements
This press release contains forward-looking statements, which
are subject to risks and uncertainties. Such statements are based
on assumptions and expectations which may not be realized and are
inherently subject to risks and uncertainties, many of which cannot
be predicted with accuracy and some of which might not even be
anticipated. Future events and actual results, financial and
otherwise, may differ from the results discussed in the
forward-looking statements. A number of these risks and other
factors that might cause differences, some of which could be
material, along with additional discussion of forward-looking
statements, are set forth in the Company's Annual Report on Form
20-F filed with the Securities and Exchange Commission. In
addition, there is uncertainty about the impact of the spread of
the COVID19 virus and its effect on the Company's operations, the
demand for Company's products, global supply chains and economic
activity in general.
For more information:
Magal Security Systems Ltd.
Diane Hill
+972-3-539-1421
dianeh@magal-s3.com
www.magalsecurity.com
IR Contact:
Brett
Maas
Managing Partner
Hayden IR
+1-646-536-7331
Brett@HaydenIR.com
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SOURCE Magal Security Systems Ltd