Israel Chemicals to sell IDE stake

IDE Ashkelon Plant Photo: PR
IDE Ashkelon Plant Photo: PR

Buyers including Clal Insurance are prepared to pay $175 million for ICL's 50% stake in the desalination company. 

Four months after sources said that Delek Group Ltd. (TASE: DLEKG) and Israel Chemicals (TASE: ICL: NYSE: ICL) had disagreed about how and at what price to sell their holdings in IDE Technologies Ltd., it was reported today that Israel Chemicals was not waiting for its partner, and was selling its 50% IDE stake for $175 million, reflecting a company value of only $350 million. The buyers are Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) (20%), the Teachers and Kindergarten Teachers advanced training fund (20%), and IDE CEO Avshalom Felber (10%).

Board of directors expected to approve

Israel Chemicals, controlled by Israel Corporation (TASE: ILCO), today reported to the TASE that it was conducting negotiations to sell its share of IDE, but "There is no certainty that these negotiations will result in a transaction."

As far as is known, the Israel Chemicals board of directors is scheduled to discuss the matter tomorrow, and is likely to approve the deal. IDE specializes in the development, design, production, and operation of desalinization facilities and advanced water solutions.

As far as is known, Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, also wants to sell its 50% stake in IDE, but as of now, there is no deal on the agenda, because Delek Group is convinced that the company is worth substantially more than Israel Chemicals has agreed to accept, and expects to receive a higher price. Israel Chemicals needs cash in order to pay dividends to its owners, who have suffered quite a few business reverses in recent years that have cost them a great deal of cash.

Delek Group and Israel Chemicals tried to sell their holdings in IDE early this year, but could not agree on the price at which to sell the company.

Israel Chemicals' reports show that IDE's 2016 revenue totaled $173 million, the same as in 2015. The company made a $10 million net profit, compared with $3 million in 2015 and $31 million in 2014.

Published by Globes [online], Israel Business News - www.globes-online.com - on April 25, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

IDE Ashkelon Plant Photo: PR
IDE Ashkelon Plant Photo: PR
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