Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH) holding company IDB Development Corp. Ltd. is in talks to sell a 36% controlling interest in subsidiary Clal Industries and Investments Ltd. (TASE: CII) to Avraham Livnat Ltd. at a company value of NIS 3.8 billion, a 46% premium on its current market price. IDB will make a NIS 1 billion capital gain on the sale, if it is closed
IDB Development owns 60.5% of Clal Industries, which it books at a value of NIS 1.29 billion. If the sale is closed, IDB's liquidity will greatly improve, as it will have almost NIS 2 billion in cash, which should be enough to meet its bond payments for the next two years. Prices for IDB Holdings and IDB Development's rose by up to 6% on the news.
Avi Fischer and Zvika Livnat are Clal Industries' co-CEOs, and Dankner serves as its chairman. The company's holdings include Nesher Israel Cement Enterprises Ltd., Hadera Paper Ltd. (AMEX: AIP; TASE: AIP), Jordan Valley Semiconductor Ltd., fashion company Golf & Co. (TASE:GOLF), Cargal Ltd. (TASE: KRGL.B1), Bet Shemesh Engines Ltd. (TASE: BSEN), Clal Energy Ltd., Kitan Textiles Industries Ltd., and Infinity Private Equity's Infinity Israel-China fund.
Earlier this month, Dankner said that he would restructure IDB Holdings in order to prepare for the Committee on Concentration in the Economy's conclusions. Dankner's partner in IDB, the Livnat family, tends to keep a low profile. In addition to its 13.3% stake in IDB Holdings, the family owns haulage and logistics company Taavura Holdings Ltd.
Clal Industries' share price rose 2.6% after trading was resumed in the share to NIS 17.35, giving a market cap of NIS 2.7 billion, and IDB Holdings' share price rose 7% to NIS 42, giving a market cap of NIS 1.7 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on December 25, 2011
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