British-Jewish businessman, Soda-Club Enterprises chairman Conrad Morris, has improved his bid for the controlling interest in Shaya Boymelgreen-controlled Azorim Investment, Development and Construction Ltd. (TASE: AZRM) unit Engel Europe Ltd. (TASE: ENGR). Engel Europe's bondholders, who are owed NIS 350 million, met yesterday to discuss the bid.
Morris has raised his bid for Engel Europe's bonds from NIS 50 million to NIS 60 million. He proposes converting the bonds into shares, which will give him control of the company. A deal is contingent upon the consent of at least 76% of the bondholders.
Morris is also offering Engel Europe subsidiary Engel Resources and Development Ltd. (TASE:ENRS) a one-year NIS 25 million loan. The loan will apparently be used to repay Engel Resources' upcoming bond payment. Morris's proposal includes a NIS 3 million bank guarantee.
Morris opposes an independent debt settlement proposed for Engel Resources by a consortium of Shaul Elovitch-controlled Eurocom Global Real Estate Ltd. (TASE: EGRE), Tagor Capital Ltd. (TASE:TGCP.B1), and Joseph Ackerman.
At the Engel Europe bondholders meeting, the bondholders proposed several changed to Morris's offer. The bondholders' lawyer later met with Morris's representative.
Azorim subsidiary Lagna Holdings Ltd. (TASE;LGNA) owns 75.35% of Engel Europe, and Azorim directly owns another 10.6%. Engel Europe owns 64.8% of Engel Resources, and Azorim directly owns another 5%.
Engel Europe's share rose 5.1% in morning trading today to NIS 17.49, giving a market cap of NIS 44 million, and Engel Resource's share rose 3.8% to NIS 18, giving a market cap of NIS 94 million.
Published by Globes [online], Israel business news - www.globes-online.com - on February 18, 2010
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