UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)
ECTEL LTD.
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(Name of Issuer)
ORDINARY SHARES, NIS 0.04 PAR VALUE
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(Title of Class of Securities)
M29925100
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(CUSIP Number)
Shlomo Heller
Koor Industries Ltd.
Telrad Building
14 Hamelacha Street
Park Afek
Rosh Ha'ayin, 48091, Israel
+972 3 900 8420
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(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
MAY 10, 2004
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(Date of Event Which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].
Page 1 of 16
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CUSIP No. M29925100 SCHEDULE 13D
-------------------------------------
------------- ------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
Telrad Networks Ltd.
------------- ------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
------------- ------------------------------------------------------------------
3 SEC USE ONLY
------------- ------------------------------------------------------------------
4 SOURCE OF FUNDS
N/A
------------- ------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
------------- ------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Israel
-------------------------- ----------- ----------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES - 0 -
BENEFICIALLY ----------- ----------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 1,619,032
REPORTING ----------- ----------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH - 0 -
----------- ----------------------------------------
10 SHARED DISPOSITIVE POWER
1,619,032
------------- ------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,619,032
------------- ------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------- ------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.4%
------------- ------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
------------- ------------------------------------------------------------------
Page 2 of 16
-------------------------------------------- ------------------------------
CUSIP SCHEDULE 13D
No. M29925100
-------------------------------------------- ------------------------------
------------- ------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
M.A.G.M. Chemistry Holdings Ltd.
------------- ------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ] (b) [X]
------------- ------------------------------------------------------------------
3 SEC USE ONLY
------------- ------------------------------------------------------------------
4 SOURCE OF FUNDS
N/A
------------- ------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
------------- ------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Israel
-------------------------- ----------- ----------------------------------------
7 SOLE VOTING POWER
NUMBER OF - 0 -
SHARES ----------- ----------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 2,318,414
EACH ----------- ----------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON - 0 -
WITH ----------- ----------------------------------------
10 SHARED DISPOSITIVE POWER
4,359,240*
------------- ------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,318,414
------------- ------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES [ ]
------------- ------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.9%
------------- ------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
------------- ------------------------------------------------------------------
* includes 2,040,826 shares held by Clal Electronics Industries Ltd., Ofer
(Ships holding) Ltd., Isal Amlat Investments (1993) Ltd., D Partners (Israel)
Limited Partnership, D Partners (BVI) L.P., Carmel Software Fund (Israel) L.P.,
Page 3 of 16
Carmel Software Fund (Delaware) L.P., Carmel Software Fund (Cayman) L.P., Carmel
Software Fund GbR, and Carmel V.C. Ltd. (acting for Siemens Venture Capital
GmbH), by reason of an agreement among such shareholders not to dispose of
certain Ordinary Shares of the Company held by all the parties to the agreement
for one year as described in greater detail in Item 6 below, to which the
Reporting Persons disclaim beneficial ownership.
Page 4 of 16
-------------------------------------------- -------------------------------
CUSIP SCHEDULE 13D
No. M29925100
-------------------------------------------- -------------------------------
------------- ------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
Koor Industries Ltd.
------------- ------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ] (b) [X]
------------- ------------------------------------------------------------------
3 SEC USE ONLY
------------- ------------------------------------------------------------------
4 SOURCE OF FUNDS
N/A
------------- ------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
------------- ------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Israel
-------------------------- ----------- ----------------------------------------
7 SOLE VOTING POWER
NUMBER OF - 0 -
SHARES ----------- ----------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 3,937,446
EACH ----------- ----------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON - 0 -
WITH ----------- ----------------------------------------
10 SHARED DISPOSITIVE POWER
5,978,272*
------------- ------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,937,446
------------- ------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES [ ]
------------- ------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
20.3%
------------- ------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
------------- ------------------------------------------------------------------
* includes 2,040,826 shares held by Clal Electronics Industries Ltd., Ofer
(Ships holding) Ltd., Isal Amlat Investments (1993) Ltd., D Partners (Israel)
Limited Partnership, D Partners (BVI) L.P., Carmel Software Fund (Israel) L.P.,
Page 5 of 16
Carmel Software Fund (Delaware) L.P., Carmel Software Fund (Cayman) L.P., Carmel
Software Fund GbR, and Carmel V.C. Ltd. (acting for Siemens Venture Capital
GmbH), by reason of an agreement among such shareholders not to dispose of
certain Ordinary Shares of the Company held by all the parties to the agreement
for one year as described in greater detail in Item 6 below, to which the
Reporting Persons disclaim beneficial ownership.
Page 6 of 16
ITEM 1. SECURITY AND ISSUER
This Amendment No. 2 relates to the Ordinary Shares, NIS 0.04 par
value (the "Ordinary Shares"), of ECTel Ltd., a corporation organized under the
laws of Israel (the "Company"), and amends the Schedule 13D, with an event date
of October 1, 2001. The Schedule 13D is hereinafter referred to as the
"Schedule." All capitalized terms used in this Amendment and otherwise undefined
shall have the meanings ascribed in the Schedule.
This Amendment is filed in accordance with Rule 13d-2 of the
Securities Exchange Act of 1934, as amended, by the reporting persons. It shall
refer only to information that has materially changed since the filing of the
Schedule.
ITEM 2. IDENTITY AND BACKGROUND
M.A.G.M. Chemistry Holdings Ltd. ("MAGM") is a corporation organized
under the laws of Israel and a wholly owned subsidiary of Koor Industries Ltd.
MAGM's principal business is a holding company. The address of MAGM's principal
office is Telrad Building, 14 Hamelacha Street, Park Afek, Rosh Ha'ayin, Israel
48091. The name, residence or business address, present principal occupation or
employment and the name, principal business and address of any corporation or
other organization in which such employment is conducted and the citizenship of
each executive officer and director of MAGM is set forth in Annex A to this
Amendment.
During the last five years, none of the executive officers or
directors of MAGM has been convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors) nor were any of them a party to a civil
proceeding of a judicial or administrative body of competent jurisdiction and as
a result of such proceeding was or is subject to a judgment, decree or final
order enjoining future violations of, or prohibiting or mandating activities
subject to, federal or state securities laws or finding any violation with
respect to such laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
Not applicable. See Item 5 below.
ITEM 4. PURPOSE OF TRANSACTION
See Item 5 below. Neither MAGM nor any of its executive officers or
directors has any plans or proposals that related to or would result in: (a) the
acquisition by any person of additional securities of the Company, or the
disposition of securities of the Company; (b) an extraordinary corporate
transaction, such as a merger, reorganization or liquidation, involving the
Company or any of its subsidiaries; (c) a sale or transfer of a material amount
of assets of the Company or any of its subsidiaries; (d) any change in the
present board of directors or management of the Company, including any plans or
proposals to change the number or term of directors or to fill any existing
vacancies on the board; (e) any material change in the present capitalization or
dividend policy of the Company; (f) any other material change in the Company's
business or corporate structure; (g) changes in the Company's charter, bylaws or
instruments corresponding thereto or other actions which may impede the
acquisition of control of the Company by any person; (h) causing a class of
securities of the Company to be delisted from a national securities exchange;
(i) a class of equity securities of the Company becoming ineligible for
termination of registration pursuant to Section 12(g)(4) of the Act; or (j) any
action similar to any of those enumerated above.
Page 7 of 16
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
On May 10, 2004, ECI Telecom Ltd. ("ECI") distributed 7,600,000 Ordinary
Shares as a dividend to ECI shareholders. MAGM is a shareholder of ECI and,
accordingly, received 2,318,414 Ordinary Shares or 12.8% of the outstanding
Ordinary Shares as a result of such dividend distribution. MAGM, Telrad Networks
Ltd. ("Telrad") and Koor Industries Ltd., as a group, collectively hold
3,937,446 Ordinary Shares or 21.9% of the outstanding Ordinary Shares.
Since the most recent filing of the Schedule 13D, Telrad effected the
following sales of Ordinary Shares in open market transactions on the NASDAQ
National Market:
----------------- ------------------- ---------------- ------------------------
Date No. of Shares Sold Price Per Share Total Price Received (1)
----------------- ------------------- ---------------- ------------------------
May 1, 2002 100 $13.6 $1,360
----------------- ------------------- ---------------- ------------------------
May 6, 2002 2,656 $13.45 $35,723
----------------- ------------------- ---------------- ------------------------
May 6, 2002 482 $13.5 $6,507
----------------- ------------------- ---------------- ------------------------
May 7, 2002 340 $13.25 $4,505
----------------- ------------------- ---------------- ------------------------
May 7, 2002 300 $13.05 $3,915
----------------- ------------------- ---------------- ------------------------
May 9, 2002 213 $12.25 $2,609
----------------- ------------------- ---------------- ------------------------
June 26, 2002 500 $11.16 $5,580
----------------- ------------------- ---------------- ------------------------
June 26, 2002 864 $11.2 $9,677
----------------- ------------------- ---------------- ------------------------
June 27, 2002 426 $11.31 $4,818
----------------- ------------------- ---------------- ------------------------
July 1, 2002 340 $11.59 $3,940
----------------- ------------------- ---------------- ------------------------
July 2, 2002 680 $11.65 $7,922
----------------- ------------------- ---------------- ------------------------
July 3, 2002 964 $11.2 $10,797
----------------- ------------------- ---------------- ------------------------
July 10, 2002 2,657 $11.3 $30,024
----------------- ------------------- ---------------- ------------------------
July 10, 2002 680 $11.65 $7,922
----------------- ------------------- ---------------- ------------------------
July 15, 2002 680 $11.05 $7,514
----------------- ------------------- ---------------- ------------------------
July 17, 2002 500 $11.32 $5,660
----------------- ------------------- ---------------- ------------------------
July 23, 2002 425 $10.77 $4,577
----------------- ------------------- ---------------- ------------------------
October 1, 2002 10,000 $8.2373 $82,373
----------------- ------------------- ---------------- ------------------------
October 7, 2002 426 $7.39 $3,148
----------------- ------------------- ---------------- ------------------------
October 21, 2002 284 $8.04 $2,283
----------------- ------------------- ---------------- ------------------------
October 30, 2002 71 $7.85 $557
----------------- ------------------- ---------------- ------------------------
November 11, 2002 680 $8.27 $5,623
----------------- ------------------- ---------------- ------------------------
November 14, 2002 1,000 $8.5 $8,500
----------------- ------------------- ---------------- ------------------------
November 21, 2002 2,000 $9.5 $19,000
----------------- ------------------- ---------------- ------------------------
November 21, 2002 1,000 $9.5 $9,500
----------------- ------------------- ---------------- ------------------------
November 25, 2002 250 $10.0 $2,500
----------------- ------------------- ---------------- ------------------------
December 2, 2002 15,000 $9.46 $141,900
----------------- ------------------- ---------------- ------------------------
January 14, 2003 115 $9.5 $1,092
----------------- ------------------- ---------------- ------------------------
January 15, 2003 885 $9.5 $8,407
----------------- ------------------- ---------------- ------------------------
January 16, 2003 6,250 $9.5 $59,375
----------------- ------------------- ---------------- ------------------------
April 8, 2003 567 $5.11 $2,897
----------------- ------------------- ---------------- ------------------------
May 29, 2003 19,750 $6.8 $134,300
----------------- ------------------- ---------------- ------------------------
August 4, 2003 1,445 $6.3179 $9,129
----------------- ------------------- ---------------- ------------------------
August 11, 2003 425 $5.5376 $2,353
----------------- ------------------- ---------------- ------------------------
September 25, 2003 680 $6.13 $4,168
----------------- ------------------- ---------------- ------------------------
(1) Includes brokers' commissions.
Page 8 of 16
ITEM 6. CONTRACTS, AGREEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER
On March 22, 2004 MAGM, Clal Electronics, Ofer (Ships holding) Ltd., Isal
Amlat Investments (1993) Ltd., D Partners (Israel) Limited Partnership, D
Partners (BVI) L.P., Carmel Software Fund (Israel) L.P., Carmel Software Fund
(Delaware) L.P., Carmel Software Fund (Cayman) L.P., Carmel Software Fund GbR,
and Carmel V.C. Ltd. (acting for Siemens Venture Capital GmbH) enter into an
Agreement (the "Shareholders Agreement"). Under the Shareholders Agreement, the
parties agreed not to dispose or enter into any transactions in connection with
the potential disposition of the Ordinary Shares they receive in the dividend
distribution described in Item 5 above during the twelve months following the
date of such distribution, subject to certain exceptions, all as set forth in
the Shareholders Agreement the full text of which is attached to this Schedule
13D as Exhibit 3 and is incorporated herein by reference.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Exhibit 1: Joint Filing Agreement
Exhibit 2: Power of Attorney
Exhibit 3: Agreement dated March 22, 2004 between MAGM, Clal
Electronics, Ofer (Ships holding) Ltd., Isal Amlat
Investments (1993) Ltd., D Partners (Israel) Limited
Partnership, D Partners (BVI) L.P., Carmel Software Fund
(Israel) L.P., Carmel Software Fund (Delaware) L.P.,
Carmel Software Fund (Cayman) L.P., Carmel Software Fund
GbR, and Carmel V.C. Ltd. (acting for Siemens Venture
Capital GmbH).
Page 9 of 16
SIGNATURES
After reasonable inquiry and to the best of our knowledge and
belief, we certify that the information set forth in this statement is true,
complete and correct.
Dated: June 29, 2004
KOOR INDUSTRIES LTD.
By: /s/ Shlomo Heller
--------------------------------
Name: Shlomo Heller
Title: General Counsel
TELRAD NETWORKS LTD.
By: /s/ Reuven Avi-Tal
--------------------------------
Name: Reuven Avi-Tal
Title: Chief Executive Officer
M.A.G.M. CHEMISTRY HOLDINGS LTD.
By: /s/ Shlomo Heller /s/ Yuval Yanai
---------------------------------
Name: Shlomo Heller; Yuval Yanai
Title: Director; Director
ANNEX A
---------------------- ----------------------------- -----------------------
Name of Executive Present Principal Residence or
Officer/Director and Occupation or Business Address
Citizenship Employment
---------------------- ----------------------------- -----------------------
Yuval Yanai Chief Financial Officer, 14 Hamelacha Street
Israel Koor Industries Ltd. Park Afek
Rosh Ha'ayin
48091 Israel
---------------------- ----------------------------- -----------------------
Yoel Shemesh Chief Accounting Department, 14 Hamelacha Street
Israel Koor Industries Ltd. Park Afek
Rosh Ha'ayin
48091 Israel
---------------------- ----------------------------- -----------------------
Shlomo Heller General Counsel 14 Hamelacha Street
Israel Koor Industries Ltd. Park Afek
Rosh Ha'ayin
48091 Israel
---------------------- ----------------------------- -----------------------