Granite offers to buy public shares in paint co Tambour

Azrieli Group Ltd. (TASE: AZRG) subsidiary Granite Hacarmel Investments Ltd. (TASE: GRNT) has made an offer to purchase the public's share in its paint subsidiary Tambour Ltd. (TASE:TMBU). Granite Hacarmel owns 84% of Tambour.

Granite Hacarmel is offering NIS 5.25 per share for Tambour, a 9.3% premium on yesterday's closing price of NIS 4.80. If the offer to purchase is accepted, it will cost NIS 54 million. The offer is not subject to a full response, and delisting of Tambour, and Granite Hacarmel may ultimately only increase its stake in the company.

Tambour's share price rose 13.2% by early afternoon to NIS 5.43, giving a market cap of NIS 350 million, which means that the offering is now at a discount. Granite Hacarmel's share price rose 0.7% to NIS 4.96, giving a market cap of NIS 729 million.

Granite Hacarmel said that it made the offer to purchase because the low trading volume in Tambour's share and the high costs of a TASE listing. In addition, the company's pyramid structure was not in line with the regulatory trend on the structure of holding companies.

Tambour reported record NIS 770.8 million revenue in 2011, 13% more than the NIS 684.2 million in 2010. Operating profit rose to NIS 58.9 million in 2011 from NIS 54 million in 2010.

Published by Globes [online], Israel business news - www.globes-online.com - on April 24, 2012