IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Clal Industries and Investments Ltd. (TASE: CII) announced on Friday that the Livnat family will acquire 55% of subsidiary Mashav Initiation and Development Ltd. for NIS 1.32 billion, reflecting a company value of NIS 2.4 billion. The deal is for the sale of Mashav "as is".
Clal Industries owns 75% of Mashav, which owns Nesher Israel Cement Industries Ltd. and 50% of Taavura Holdings Ltd. The Livnats own the other half of Taavuva, which they will sell to Mashav as part of the deal.
Clal Industries will report a profit of NIS 750-850 million on the sale, and IDB Holding will report a profit of NIS 400-500 million.
At the same time, Nochi Dankner's private company Ganden Holdings Ltd., though which he controls IDB, and his partner Manor Holdings Ltd., owned by the Manor family, reached an agreement for the Livnat family to leave the controlling core of IDB. As a result, the Livnat family will no longer be included as part of the IDB single borrower group.
Ganden and Manor gave the Livnats a put option to sell its 13.33% stake in IDB to them, and Ganden and Manor have a call option to buy the stake from the Livnats.
Dankner, the Manor family and the Livnat family acquired control of IDB in May 2003 from the Recanati and Carasso families. IDB has since distributed NIS 5 billion in dividends, giving a full return on the investment.
Nochi Danker said, "We decided to sell our significant holding in order to improve IDB Group's financial standing, and to increase its liquid balance. In the past two months, we considered a number of proposals received from top-quality companies with regard to a sale of Clal Industries and/or one of its assets. We were in advanced talks about two of these offers. I am pleased that, in the end, we signed the deal which seems to us to be the best of the alternatives."
Zvi Livnat said, "We're excited to embark on an independent path, after nine years of close collaboration with Nochi Dankner and the Livnat family in the controlling core of IDB, and the close friendship established between us. The full acquisition of Taavura Holdings by Mashav will enable us to create a business group that will include Nesher Cement and the diversified operations of Taavua as part of the Mashav platform."
Published by Globes [online], Israel business news - www.globes-online.com - on February 12, 2012
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