Africa-Israel is selling its 50% stake to two other shareholders in the swimwear maker.
Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) has signed an memorandum of understanding (MOU) for the sale of its 50% stake in swimwear manufacturer Gottex Models Ltd. and its affiliates Gottex Models Ltd., Gottex Brands, and Christina America Inc. of Canada, for $42 million in cash, and an additional sum of up to $7.5 million depending on results posted over the next four years. The buyers are the other shareholders in Gottex Models Ltd.
Gottex Brands markets in Israel fashion brands Pull and Bear, Massimo Dutti, and Zara under a franchise from Spain's Inditex SA (IBEX: ITX). The additional payment of up to $7.5 million will depend on the business results of these brands over the next four years.
Africa-Israel's share rose 3.2% in early trading today to NIS 32.86.
Published by Globes [online], Israel business news - www.globes-online.com - on January 28, 2009
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