The Israeli construction company has turned to the courts after acquisition talks by the Leo Noe Group broke down.
Development, construction and contracting company Ortam Sahar Engineering Ltd. (TASE:ORTM) has filed a stay-of-proceedings request to the court. Only yesterday, it was reported that talks on Ortam Sahar's acquisition by the Leo Noe Group had been abruptly terminated, after it decided not to continue with the acquisition.
The veteran contracting company, controlled by CEO Amir Nahum and Chairman Uri Dori, has recently found itself in a difficult situation due to the investigation of the company's conduct, in which Nahum was questioned. Several years ago, the company was also involved in the collapse of the balcony in a project developed by Gindi Holdings in Hadera. Ortam Sahar had been the contractor in this project and the two companies filed mutual lawsuits following this affair.
The company has a sizeable number of housing projects, in which it is mainly a contractor. It is also involved in a target-price project in Rosh Haayin and has been awarded buyer's fixed-price Mehir Lamishtaken projects in different parts of Israel. Therefore, this stay of proceedings will also be the first case testing the outcome of a company being unable to continue developing government projects and projects for eligible people it has been awarded in a tender.
Published by Globes [online], Israel business news - www.globes-online.com - on October 19, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016
Amir Nahum photo: Einat Levron
Ela Levy-Weinrib and Aviv Levy