Granite, which has a market cap of $189 million, was acquired at a value of $350 million.
Granite Hacarmel Investments (TASE: GRNT) controlling shareholders Glencore International AG and the Borovich family, which jointly hold a 53% stake in the company through Boroglen, have decided to sell their holdings by way of a tender, managed by investment bank Merrill Lynch. The decision to sell was taken after Glencore, which holds half the controlling share, decided to realize its investment in Granite and was then followed by the Borovich family. The remaining stakes in Granite are held by Yeshayahu Landau (25%) and the public.
Granite has a market cap of $189 million and was acquired by the Borovich family and Glencore eight years ago at a value of $350 million. During this period the company issued dividends worth a total of $170 million, which means that this was not an especially successful investment, neither for the Borovich family nor Glencore.
Granite Hacarmel is active in fuel and energy through Sonol Israel Ltd, and Supergas, and in paints and chemicals through Tambour Ltd. (TASE:TMBU). Its other business interests include income-producing real estate and the building and operation of water treatment installations, through Tambour Ecology.
Published by Globes [online], Israel business news - www.globes.co.il - on September 7, 2006
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