The cash demands on Gmul Investment Co. Ltd. (TASE: GMUL) led it to sell another holding. Gmul reported today that it sold its stake in Metis Capital Ltd. (TASE: MTSC) to Mirage Israel Development Ltd., owned by Gad Zeevi, for NIS 22.3 million.
The price reflects a premium of 38% over the current share price.
Gmul expects to record a 10% capital loss on the sale.
The payment to Gmul will be in three stages: NIS 250,000 at the signing of the deal, NIS 3.6 million no later than December 31, and the balance at the closing of the deal, not later than January 8, 2009.
In a stormy shareholders' meeting earlier in the month, Gmul controlling shareholder Leon Recanati claimed the Metis holding was worth at least triple its current value but apparently the company's situation and its need for cash led it to sell the stake at much less than what Recanati estimated its worth to be.
Published by Globes [online], Israel business news - www.globes-online.com - on December 28, 2008
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