Sources inform ''Globes'' that executives of Canada's Allana Potash Corporation (TSX: AAA) are due in Israel soon to review the possibility of a dual-listing on the Tel Aviv Stock Exchange (TASE). Earlier this, Allana signed a cooperation agreement with Israel Chemicals Ltd. (TASE: ICL) to jointly develop Allana's Danakhil potash mine in northern Ethiopia.
Allana, a small potash producer, with a mine in Argentina and a planned project in Ethiopia, is run by president and CEO Farhad Abasov. It has a market cap of C$120 million.
The sources added that as part of the review of a dual-listing, Allana will go on a road show among major Israeli investment institutions, including Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL). If it goes ahead with the dual listing, it will probably be included in the TASE Mid-Cap Index. Israel Chemicals is listed on the Tel Aviv 25 Index with a market cap of NIS 43 billion ($12.3 billion).
Under the strategic partnership, Israel Chemicals will acquire 16% of Allana for $23 million, and will increase its stake to 37% after exercising warrants that were issued it. Allana will use the proceeds to develop the mine. Israel Chemicals will provide technical assistance to develop and operate the Danakhil mine, and will purchase and sell the mine's output. Israel Chemicals Africa director Yoram Cohen was appointed a director in Allana.
The mine obtained all the necessary permits last year, and has broad support among Ethiopia's leaders.
Published by Globes [online], Israel business news - www.globes-online.com - on February 26, 2014
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