FIMI buys control of Hadera Paper

FIMI's Ishay Davidi

FIMI Opportunity Funds is paying NIS 354 million for Clal Industries' 59% Hadera Paper stake.

FIMI Opportunity Funds has bought Clal Industries' 59% stake in Hadera Paper Ltd. (TASE: AIP; Pink Sheets: AIP) for NIS 354 million, or NIS 117.88 per share. This represents a 31% premium on the opening price of Hadera Paper stock on the Tel Aviv Stock Exchange this morning, and reflects a valuation of NIS 600 million for the company. In response, Hadera Paper's share price rose 7% today to NIS 97.5.

Completion of the deal between FIMI, owned by Ishay Davidi, and Clal Industries, owned by Len Blavatnik, is subject to approval by the Antitrust Authority and the Minister of Energy, Infrastructures and Water, and to there being no material worsening of the condition of the company, among other conditions.

Hadera Paper was founded in 1951, and deals in the manufacture and sale of paper for packing and printing, and the processing of waste paper and plastic. The company has a manufacturing plant in Hadera, and employs about 1,700 people.

Hadera Paper chairman Johanan Locker said, "FIMI's investment in Hadera Paper represents a vote of confidence in the company's path and in its workers, in its latent potential, and in the contribution of the measures that have been carried out at the company to adapt the structure of its business to the current era and to focus on its core activities."

Davidi said, "Hadera Paper is one of the foundation stones of Israeli industry. The investment stems from FIMI's desire to strengthen and enhance the company and improve its capabilities in the face of growing imports in its area of business. FIMI sees a significant challenge in the purchase of the company. I believe that FIMI's broad, proven know-how in enhancing companies, together with the experience and know-how of the company's workers and management, will lead Hadera Paper to growth and profitability, generating added value for its employees, customers and shareholders."

Published by Globes [online], Israel business news - www.globes-online.com - on June 24, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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FIMI's Ishay Davidi
FIMI's Ishay Davidi
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