Gmul Investment Co. Ltd. (TASE: GMUL) subsidiary Electronics Line (TASE: ELEC; XETRA: EIC), controlled by Eyal Yona and Amnon Barzilai, is in advanced negotiations to acquire 50% of Japanauto from Gad Zeevi’s company Mirage. The deal for Japanauto, Japanese auto manufacturer Subaru’s agent in Israel, is at an estimated company value of $40-60 million.
At the same time, Texas businessman J. Livingston Kosberg today bought Mirage’s debts to the banks on account of Japanauto for $45 million. Mirage granted a lien on all of its Japanauto shares against its $65 million debt to First International Bank of Israel (TASE: FTIN1;FTIN5) and Israel Discount Bank (TASE: DSCT).
With the completion of the deal, Kosberg becomes a secured creditor of all of Japanauto’s business. He can sell the debt to another party, or foreclose the lien, and become the owner of Japanauto. In any event, a sale of Japanauto’s shares by Mirage will require his consent.
According to figures published today by the Israel Motor Vehicles Importers Association, Japanauto delivered 1,073 Subaru cars in the first quarter of 2005, 23% fewer than in the corresponding quarter last year. Hyundai had the most auto deliveries in Israel in the quarter 4,738, 18% more than in the first quarter of last year.
Published by Globes [online] - www.globes.co.il - on April 20, 2005