EZ Energy Ltd. (TASE:EZ) wants to take back full control of US gas station and convenience store subsidiary EZ Energy USA Inc. EZ Energy USA has notified Investec Bank (UK) Ltd. (LSE: INVP), which owns 34% of the company that it will exercise its option granted in the loan agreement to buy back the shares for $10.4 million.
In a separate development, EZ Energy made a NIS 27 million principal and interest payment on its Series A bond, amounting to a fifth of the bond debt.
In late 2008, Investec Bank lent EZ Energy USA $10 million in exchange for an option to convert the loan into debt, which would be repaid after three years. EZ Energy was given the option to repay the loan after one year, and get back the shares in EZ Energy USA.
If Investec Bank decided to sell the EZ Energy USA stake, EZ Energy will record a $10 million debt with a longer average duration than its current debt to Investec.
EZ Energy's share price rose 2.8% to NIS 0.074, giving a market cap of NIS 75 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 1, 2010
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