The share price of IDB Holding Corp. Ltd. (TASE:IDBH), controlled by chairman Nochi Dankner, jumped in morning trading today, after the company received the final NIS 509 million payment from Len Blavatnik's Access Industries Inc. for Clal Industries and Investments Ltd. (TASE: CII). Access Industries paid IDB NIS 1.27 billion for its 50% stake in Clal Industries, giving a company value of NIS 2.55 billion.
IDB said that, with the final payment, the secondary lien has been removed on the Clal Industries shares, used as collateral for the debt. IDB added that, under the agreement with Access Industries, the latter has the right to order IDB to sell its remaining 10.5% stake in Clal Industries to a third party, in whole or in part, in cash at NIS 15 per share by December 31, 2012. If Access Industries exercises this right in full, IDB will make an additional NIS 251 million.
IDB's share price rose 7% by early afternoon to NIS 16.44, giving a market cap of NIS 800 million, and Clal Industries' share price rose 6% to NIS 13.48, giving a market cap of NIS 2.1 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on November 25, 2012
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