TEL AVIV, Israel, November 10, 2016 /PRNewswire/ --
ICL (NYSE and TASE: ICL) today announced, further to note 23b(1) of the Company's financial statements for 2015, regarding the dispute between the State of Israel and ICL's subsidiary Dead Sea Works Ltd. ("DSW"), over the principles for calculating the interest and the linkage differences to be added to the principal amount paid to the State of Israel for the period between the years 2000 and 2013 (including), and which were discussed during the second phase of the Royalties Arbitration, that the arbitrators' resolution regarding the interest and the linkage differences calculation was rendered today.
According to the resolution, made by a majority of two of the three arbitrators, the amounts of royalties principle that were paid, according to the arbitrators' decision, for the period between 2000 and 2013 (including), will be calculated in NIS terms and accordingly, will bear linkage differences, as well as calculation of interest in NIS, as stipulated in the Law of Interest and Linkage, 5721-1961.
According to the Company's estimation, the amount for payment resulting from the arbitrators' resolution for the above mentioned period is approximately $60 million (according to the exchange rate as at today). As of December 31, 2015, the Company recorded a provision in its financial statements of approximately $34 million, according to its estimation as to the manner of payments of interest and linkage differences. Pursuant to the arbitrators' resolution rendered today, the Company is expected to increase the provision in its financial statements by an amount of approximately $26 million (according to the exchange rate as at today).
Name of the authorized signatory on the report and name of authorized electronic reporter: Lisa Haimovitz
Position: SVP, Global General Counsel and Company Secretary
Signature Date: November 10, 2016