Lapidoth Oil sues Yuli Ofer estate for NIS 17.5m
Lapidoth contends that CEE refuses to buy the remaining 10.8% of Inventech Central Hotels it owns, in the event that Yuli Ofer ceased to be CEE's owner.
CEE owns 68% of Inventech, and Ruth Ofer directly owns 3%.
In the statement of claim, Lapidoth contends that the respondents are in breach of the third part of a put option to acquire Inventech shares from Lapidoth in the event that Yuli Ofer ceased to the controlling shareholder of CEE. The first two stages of the deal were completed, in which CEE acquired 74% of Inventech from Lapidoth, and subsequently an additional 3%.
Lapidoth also contends that CEE can redeem its bonds issued to the public, which proves that the company will not be able to carry out its contractual commitment to acquire Lapidoth's remaining 10.8% stake in Inventech in the future. It claims that it has clear grounds for suing Yuli Ofer's estate, because, prior to his death, "Yuli Ofer signed an automatic letter of guarantee in favor of CEE's commitments pursuant to the options set out in the agreement." The company makes a similar claim against Ruth Ofer, who it contends, also signed an automatic letter of guarantee to exercise the put option.
Lapidoth Oil's share price was unchanged at midday at NIS 6.48, giving a market cap of NIS 280 million, and Inventech's share price fell 4.9% to NIS 0.91, giving a market cap of NIS 36 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 20, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012
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