Iny buys control of GM importer UMI from Kardan

Chevrolet
Chevrolet

Kardan Israel will receive NIS 397 million for its 46.1% stake in the vehicle importer.

Kardan Israel is leaving Israel's vehicle import sector after 25 years after agreeing to sell its 46.1% stake (held directly and indirectly) in UMI (Universal Motors Israel). Kardan's long-time partner the Iny family will buy the stake for NIS 397.4 million at a company value of NIS 862 million. Kardan Israel will record a capital gain of NIS 100 million.

The Iny family will now increase their current 505 stake in the company to 96.1%. UMI imports and markets General Motors (Chevrolet and Cadillac) and Isuzu vehicles to Israel and also fully owns Kardan Vehicle, the rental and leasing company that has the AVIS franchise for Israel. The remaining 3.9% stake in the company will continue to be held by former Israel Air Force commander General (res.) Avihu Ben-Nun.

Kardan Israel has a NIS 126 million debt to Mizrahi Tefahot Bank (TASE:MZTF) due to be repaid by the end of 2016 against which its holdings in UMI are held by lien.

Kardan Israel said that it will receive NIS 214.4 million for its stake in UMI on the day that the deal is completed and the balance in five payments over two years.

Published by Globes [online], Israel business news - www.globes-online.com - on May 23, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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