The company is now likely to focus on the tender for Oil Refineries Haifa.
Israel Corp. (TASE: ILCO) has notified the Tel Aviv Stock Exchange (TASE) that it is no longer considering, at this stage, the option of investing in Paz Oil Company Ltd.. The company said it would continue to look at investment opportunities in the energy sector both in Israel and abroad. Israel Corp is now likely to focus all its efforts on the acquisition of the controlling interest in Oil Refineries Haifa.
The negotiations between Israel Corp and Paz controlling shareholder Zadik Bino began after Paz won the tender for Oil Refineries Ashdod with an offer of NIS 3.5 billion that beat a rival bid from Delek Group Ltd. (TASE: DLEKG) controlled by Yitzhak Tshuva. Most of the sum, which is set to be transferred to the Ministry of Finance this week, will be covered by finance from a consortium of banks, led by Bank Hapoalim (LSE: BKHD; TASE: POLI).
Meanwhile, Bino is continuing the process of filing a draft prospectus for Paz’s IPO. Bino believes that the flotation will give Paz a price tag higher than any of the offers it has received to date. The company posted a net profit of NIS 84 million in the first half of 2006, NIS 167 million profit in 2005, and NIS 162 million profit in 2004.
Published by Globes [online], Israel business news - www.globes.co.il - on September 25, 2006
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