Migdal was also granted an option to buy 1% of Azorim itself.
Azorim Investment, Development and Construction Ltd. (TASE: AZRM) has signed an memorandum of understanding (MOU) for the sale of 9% of two subsidiaries to Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) for NIS 100 million. Migdal was also granted an option to buy 1% of Azorim itself. The deal will improve the cash position of Azorim, controlled by Shaya Boymelgreen through Boymelgreen Capital Ltd. (TASE:BMGN).
Migdal took care not to invest directly in Azorim, which is burdened by a consolidated debt of NIS 6.4 billion, as of the end of June. Instead, it invested in wholly-owned subsidiaries Azorim Building Ltd. and Azorim Real Estate Ltd., which wholly owns residential developer Shikun u'Pituah Israel Ltd., income-producing property developer Shikun u'Pituah Meniv Ltd., and Azorim Residential Ltd.
Published by Globes [online], Israel business news - www.globes-online.com - on November 8, 2009
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