Tadiran says talks with Azrieli Group failed to reach a binding agreement.
Tadiran Holdings, controlled by Moshe Mamrod, has announced the cancellation of talks for the acquisition of gas distributor Supergas from the Azrieli Group Ltd. (TASE: AZRG). Tadiran says that the memorandum of understanding signed by the two companies earlier this year is void since the talks between them did not mature into a binding agreement.
"Globes" revealed in May that air conditioner manufacturer Tadiran was in talks to buy Supergas from Azrieli Group for NIS 250 million. This came after Tadiran had announced a new strategic roadmap. In February this year, Tadiran reported its intention of focusing its activity on energy efficiency alongside its traditional air conditioner business. The company recently decided to exit its white goods marketing activity. Its share price has shot up about 90% this year, giving it a market cap of some NIS 310 million.
Azrieli Group holds Supergas through its Granite Hacarmel unit, which also holds fuel company Sonol and infrastructure company GES. The deal with Tadiran was to have been worth NIS 430 million to Azrieli, since, in addition to the payment from Tadiran, it was to have withdrawn nearly NIS 180 million cash from Supergas.
Published by Globes [online], Israel business news - www.globes-online.com - on September 7, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015
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