Oil Refineries' share price is falling on large turnover.
Israel Corporation (TASE: ILCO) is selling shares in Oil Refineries Ltd. (TASE:ORL) today through Leumi Partners Ltd., which is pushing the share price down on a large trading turnover.
It is believed that the Israel Corporation, controlled by Idan Ofer, is selling shares in Oil Refineries in preparation for an offering by Israel Petrochemical Enterprises Ltd. (TASE:PTCH), another major shareholder in Oil Refineries, whose Oil Refineries shares are to be used as collateral.
The sale by Israel Corporation is likely to decrease the value of Israel Petrochemical's collateral, which will require the latter's controlling shareholder, David Federman, to supplement it. Meanwhile, Israel Petrochemical's shares in Oil Refineries are currently encumbered in favor of Bank Hapoalim (TASE: POLI). Foreclosure of these shares is being delayed in order to allow Israel Petrochemical to complete its offering.
Published by Globes [online], Israel Business News - www.globes-online.com - on June 19, 2017
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