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MAGS - Big distribution:

YEHUD, ISRAEL, December 7, 2020 -- 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.

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 respct 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 [e-mail], telephone: [phone], 9 Ahad Ha'am St., Tel-Aviv, Israel.