British-Israel Investments Ltd. (TASE: BRTS), controlled by Leo Noe, has reached a suspended agreement for the acquisition of Iris Hagilboa Construction and Development Ltd. from Bronfman Fisher Investments Ltd.
Iris Hagilboa owns the IKEA Israel lot at Me'uyan Soreq in Rishon LeZion. The deal is subject to approval of the municipal building plan for the lot.
The objections subcommittee of the Tel Aviv Regional Planning and Building Commission has not yet completed its discussions on the objections to the limited building plan for the Me'uyan Soreq site, even though all the objections have been withdrawn.
In July 2006, a a British Israel subsidiary signed a agreement with Bronfman Fisher Investments for a conditional allocation of Iris Hagilboa stock, whereby British Israel would receive between one third and 43.33% of Iris Hagilboa at the end of January 2007 or when the Me'uyan Soreq lot was opened.
Iris Hagilboa has NIS 510 million in assets and NIS 360 million in debts to banks and third parties. The assets include the 75-dunam (18.75-acre) lot at Me'uyan Soreq and a commercial center at Betar Illit.
The parties have not yet signed the agreement, nor has British Israel's board approved it.
Published by Globes [online], Israel business news - www.globes-online.com - on July 9, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009