Grupo Dolphin S.A., controlled by Eduardo Elsztain, is offering to buy the shares in IDB Development held by the public and seeks to delist the company. This emerges from the details of the arrangement that Elsztain is proposing in place of the previous arrangement that was part of the debt arrangement in IDB Holding Corporation.
Elsztain and Moti Ben-Moshe are committed to carrying out two offers to purchase in 2015-2016 amounting to a total of NIS 516 million, but, according to Elsztain, money is required to save IDB Development, and so he proposed to the trustees of the arrangement, Eyal Gabbai and Chagai Ulman, to replace the previous commitments with the current arrangement.
This proposed arrangement includes cash injections of NIS 512 million by Elsztain directly into the company, in stages and under certain conditions, and the purchase of all the public's shares and the delisting of the company from the stock exchange.
A week ago, the proposal was submitted to Gabbai and Ulman, who in practice currently represent the interests of the minority shareholders in IDB Development, but they did not accept it, because they estimate that it represents a haircut of 40% in comparison with the existing arrangement.
Published by Globes [online], Israel business news - www.globes-online.com - on May 28, 2015
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