Moti Ben-Moshe's deposit for the acquisition of control in IDB Holding Corp. Ltd. (TASE:IDBH) came from the day-to-day business of his company, Extra Holding GmbH, and he is the sole owner, concludes the Israel Securities Authority experts. The report was published today, following a request by "Globes", and at the order of Tel Aviv District Court Judge Eitan Orenstin, who is hearing the IDB case.
"No third party has been found which can direct Extra Holding's business and which can be considered a controlling shareholder," the report states. It concludes that Ben-Moshe is Extra Holding's controlling shareholder, dismissing the allegations by IDB's former chairman, Nochi Dankner and his associates that Ben-Moshe does not represent the consortium that took over IDB. The report explicitly states, "The ownership and control of Extra Israel, which will acquire IDB shares, is by Ben-Moshe."
The report adds that the review team received full cooperation from Extra Holding's managers, who provided financial reports for previous years and an expected cash flow report for 2014.
"In view of all the findings by the review team, which includes representative from the Securities Agency, the Official Receiver, and court-appointed observer, Adv. Hagai Ullman, Ben-Moshe's effective control of Extra Holding cannot be denied," states the report. "The corporate holdings structure through a trustee, such as the holding in ExtraEnergie GmbH, is an accepted and recognized structure in public companies in Israel and other countries."
The Securities Authority completely clears Ben-Moshe, and dismisses Dankner's allegations. "Nothing was found to reject the profitability figures presented by the company," states the report. "Nothing was found to reject the cash flows presented by the company. Nothing was found to contradict the company's statement that the money deposited in the trust account in Israel originated from ExtraEnergie's current operations."
The report states that Extra Holding's cash balance should be enough to meet the company's future day-to-day operations and that it will be continue to grow next year, and meet its commitments under IDB's debt settlement. The report, however, has a caveat, saying, "It should be emphasized that the financial review is a snapshot. There is no assurance that the profit margins and cash flows will continue as they are at present, and will also support future commitments under the settlement."
Published by Globes [online], Israel business news - www.globes-online.com - on April 23, 2014
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