Russian-Jewish oligarch Mikhail Mirilashvili will invest in Myra and Sarah licensee Israel Land Development Company Energy Ltd. (TASE: IE), despite the fall in the company's share price.
The company notified the TASE today that it will allot to Mirilashvili shares for NIS 40 million. It will also allot to him 14.5 million shares at NIS 0.58 per share, for a total of NIS 8.41 million, bringing his holding to 68,967,224 shares, for a 6.59% stake. Mirilashvili was originally due to pay NIS 0.735 per share, but the price was lowered due to the plunge in ILDC Energy's share price over the past week.
ILDC Energy will also allot to Mirilashvili 8.9 million warrants, exercisable for the same number of shares at a strike price of NIS 0.90 per share, a 157% premium on this morning's opening price.
ILDC Energy's parent company, Israel Land Development Company (TASE: ILDC) agreed to compensate Mirilashvili by up to NIS 12 million in 18 months if ILDC Energy's share price falls below NIS 0.58.
ILDC Energy's share price rose 1.4% in morning trading today to NIS 3.55, giving a market cap of NIS 345 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 16, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012