IDB calls off loan talks after Clal Industries sale
IDB has cancelled plans for a NIS 150 million loan from the Bereshit debt recycling fund.
On May 2, IDB announced that it was in talks with Menorah Mivtachim Holdings Ltd. (TASE: MORA) and the Bereshit debt recycling fund for a NIS 300 million loan, NIS 150 million from each institution. The loans were to be linked to the Consumer Price Index (CPI) and bear 6.9% annual interest, which would be repaid in quarterly payments. IDB secured the loan from Menorah, but has now cancelled the planned loan from the Bereshit fund, as it was to be partly secured by a lien on Clal Industries' shares.
"The company and the lender decided to terminate the talks between them on the loan agreement, which had not yet been completed, and to cancel it, following the company's agreement to sell its holding in Clal Industries," stated IDB Development in a notice to the TASE.
On May 20, IDB announced the sale of 50%, out of its 60.5% stake in Clal Industries to to Access Industries Inc., controlled by Len Blavatnik of the US, at a value NIS 2.55 billion. IDB Development expects to report a pretax capital gain of NIS 325-400 million on the sale.
IDB Holding's share price was unchanged at NIS 13.02 in early trading on the TASE today, giving a market cap of NIS 601 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 12, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012
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