Len Blavatnik has closed the acquisition of 49.9% of Clal Industries and Investments Ltd. (TASE: CII) for NIS 1.27 billion from IDB Holding Corp. Ltd. (TASE:IDBH), controlled by Nochi Dankner. The deal values Clal Industries at NIS 2.55 billion. The proceeds from the sale should help IDB lower the yield on its bonds.
On May 20, IDB Holding announced that it would sell half of Clal Industries to Len Blavatnik's Access Industries Inc. IDB Holding's unit, IDB Development Corporation Ltd., expects to report a capital gain of NIS 325-400 million on the sale. Under the agreement, 60% of the payment will be made at the closing, and the balance will be paid in six months. Blavatik has given IDB a lien on 40% of Clal Industries during this period as collateral for the final payment.
Clal Industries' share price rose 2% by mid-afternoon to NIS 12.08, giving a market cap of NIS 1.9 billion, and IDB Holding's share price rose 2.5% to NIS 13.09, giving a market cap of NIS 600 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 5, 2012
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