Azorim Investment, Development and Construction Ltd. (TASE: AZRM) is continuing negotiations for the sale of its stake in the Sheraton Moriah hotel in Eilat to local businessman Asher Gabai and his partner Benny Zerach for NIS 141.5 million. The parties have extended a deadline for the talks to January 7.
Azorim and its parent company Boymelgreen Capital Ltd. (TASE:BMGN) own the hotel through their joint company, Azorim Tourism Ltd. Azorim owns 75% of Azorim Tourism and Boymelgreen Capital owns 25%.
In September, Azorim Tourism and Oron Hotel and Tourism Holdings Ltd., owned by Gabai and his partner, signed an memorandum of understanding (MOU) for the conduct of due diligence and the sale of the Sheraton Moriah hotel to Oron and/or an affiliated company. The due diligence and negotiations were due to be completed by the end of 2008.
Azorim and Boymelgreen Capital seek to raise funds to repay bondholders.
Azorim chairman Shaya Boymelgreen controls the company through Boymelgreen Capital. Azorim's share fell 2.4% by midday to NIS 6.35. Boymelgreen Capital's share was unchanged at NIS 11.
Published by Globes [online], Israel business news - www.globes-online.com - on January 5, 2009
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