The merger will be made at a company value of NIS 3.03 billion for Koor, compared with today's market cap of NIS 2.92 billion.
The boards of directors of Nochi Dankner's IDB Holding Corp. Ltd. (TASE:IDBH) unit Koor Industries Ltd. (TASE:KOR) and its parent company Discount Investment Corporation (TASE: DISI) have approved the merger of the companies. Discount Investment will acquire all outstanding Koor shares, which will become a wholly-owned subsidiary and delisted. The merger will be made at a company value of NIS 3.03 billion for Koor, compared with today's market cap of NIS 2.92 billion, and will include an adjustments mechanism for any change in Koor's position in Credit Suisse Group AG (NYSE: CS; SWX: CSGN; XETRA: CSGZ) by the closing date, or if it distributes any dividends.
Koor posted a net profit of NIS 45 million for the second quarter of 2013, compared with a net loss of NIS 1.05 billion for the corresponding quarter. Makhteshim Agan Industries Ltd. contributed NIS 57 million to Koor's second quarter results and Credit Suisse contributed NIS 87 million, compared with a loss of NIS 937 million for the corresponding quarter.
Koor owned 31.06 million Credit Suisse shares at the end of June, amounting to a 1.95% stake. Koor has subsequently sold shares for NIS 330 million, which it will report in its financial report for the third quarter.
Published by Globes [online], Israel business news - www.globes-online.com - on August 11, 2013
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