The battle for control of the companies belonging to Lagna Holdings Ltd. (TASE;LGNA), controlled by Shaya Boymelgreen controlled Azorim Investment, Development and Construction Ltd. (TASE:AZRM), is heating up. This follows the entry of Shaul Elovitch, who is in the process of acquiring a controlling stake in Bezeq Israel Telecommunications Company Ltd. (TASE:BZEQ) into the bidding for Engel Resources and Development Ltd. (TASE:ENRS), one of Lagna's troubled real estate companies.
Eurocom Global Real Estate Ltd. (TASE: EGRE), which is controlled by Elovitch and Yair Weil, has joined the Tagor-Ackerman consortium in bidding for control of Engel Resources as part of a debt arrangement with its bondholders.
The bidders comprise EGRE (40%), Tagor Capital Ltd. (TASE:TGCP.B1) controlled by Ofer Lieberson (30%) and Joseph Ackerman (30%).
The required investment in Engel Resources, which is a subsidiary of Engel Europe Ltd. (TASE:ENGR1; ENGR5), a Lagna unit, totals NIS 90 million. This comprises NIS 45 million for a 51% stake, and extending a further NIS 45 million credit line. Engel Resources owes NIS 260 million to its bondholders. Engel Resources is also subject to a competing bid from Origo Investments GP Ltd., a debt recycling fund.
Published by Globes [online], Israel business news - www.globes-online.com - on February 15, 2010
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