This morning, the board of Israel Corporation (TASE: ILCO) announced that Avisar Paz, the company's CFO, would be appointed CEO in place of Nir Gilad after the process of splitting the company was complete. Paz will be replaced by Natan Yalovsky.
Gilad is about to end eight years in charge at Israel Corporation, during which his salary cost was some NIS 100 million. His time at the helm of Israel Corporation was characterized by substantial destruction of value, notably in the investment in failed electric car venture Better Place.
As far as is known, Gilad will be given a role in the international businesses of Israel Corporation controlling shareholder Idan Ofer. At the same time, he will continue to serve as chairman of Israel Chemicals Ltd. (TASE: ICL), Israel Corporation's main subsidiary and a source of large dividends.
Under the spin-off plan, Israel Chemicals and Oil Refineries Ltd. (TASE:ORL) will remain under their original Israel Corporation umbrella, which will be stripped of its other activity but will continue to operate from Israel, from a reduced head office. It shares will continue to be traded on the Tel Aviv Stock exchange.
The new company that will be spun off from Israel Corporation will be called Kenon, and will be traded on the New York Stock Exchange (alongside Israel Chemicals, which was floated in New York three weeks ago). It will be the holding company for Zim Integrated Shipping Services Ltd., Chinese automobile venture Qoros, power production arm ICP, Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM), and cleantech investment unit ICG.
Published by Globes [online], Israel business news - www.globes-online.com - on October 13, 2014
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