Nochi Dankner controlled-IDB Holding Corp. Ltd. (TASE:IDBH) unit Koor Industries Ltd. (TASE:KOR) reported this morning to the Tel Aviv Stock Exchange (TASE) that a deal being negotiated with a Chinese company for the sale of Makhteshim Agan Industries Ltd. (TASE: MAIN) may be reworked.
The new deal framework is apparently being sought by proposed buyer China National Chemical Corporation (ChemChina) in a new round of negotiations, and ahead of third quarter financial reports set to be published in coming days by Koor and Makhteshim.
ChinaChem wants to cut the valuation of Makhteshim in the deal from $2.72 billion to $2.4 billion, reflecting an approximate price of NIS 20.30 per share (not including shares held by Koor itself).
ChemChina also does not want the sellers to have a put option which was included in the original framework of the deal.
Koor added that a revised deal may also be for fewer shares of Makhteshim sold by Koor, so that Koor remains with more than the 30% holding envisioned under the original deal.
Published by Globes [online], Israel business news - www.globes-online.com - on November 21, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010