Azrieli Group Ltd. (TASE: AZRG) today published an offer to purchase for its energy and manufacturing holding company subsidiary Granite Hacarmel Investments Ltd. (TASE: GRNT). Azrieli is offering NIS 4.40 per share for a total NIS 255 million, compared with Granite Hacarmel's opening price of NIS 3.66 per share.
Azrieli owns 60.6% of Granite Hacarmel, Yeshayahu Landau owns 14.3% and financial institutions and the public owns the rest.
Granite Hacarmel's share price rose 24% in morning trading, following the announcement, to NIS 4.54 per share, giving a market cap of NIS 675 million. The jump has erased the premium compared with the share's opening price. Azrieli's share price is up 0.4% to NIS 77.75, giving a market cap of NIS 9.4 billion.
Granite Hacarmel's share price fell 63% from NIS 10 in April 2010 until yesterday, which made it worthwhile for Azrieli Group to make an offer to purchase. Granite Hacarmel's holdings include fuel company Sonol Israel Ltd., Supergas Ltd., paint maker Tambour Ltd. (which was delisted a few months ago), desalination and sewage treatment plants owner GES Global Environmental Solutions Ltd., and real estate and oil and gas exploration companies.
Published by Globes [online], Israel business news - www.globes-online.com - on August 16, 2012
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