Gaon Group (TASE: GAGR) (formerly Middle East Tube Company) is selling its 25.1% stake in irrigation company Metzerplas to Kibbutz Metzer, a partner in Metzerplas, for NIS 45 million, reflecting a NIS 180 million company value.
Gaon Group, controlled by Viola group subsidiary Gaon Holdings Ltd., today announced that it had signed an agreement with the kibbutz to sell its holdings. NIS 39 million of the proceeds will be paid when the deal is completed while the remaining NIS 5 million will be paid 18 months after that. Before the agreement was signed, Metzerplas distributed dividends to its shareholders, including NIS 1.5 million to Gaon Group, bringing the total proceeds in the deal to NIS 45 million.
Gaon Group also reported that the agreement between the parties stated that if the kibbutz decides to offer shares in Metzerplas on the stock exchange within three years of the date on which the deal is completed and at a company value of over NIS 174 million, Gaon Group will be entitled to an additional payment dependent on the company value in the offering.
Gaon Group believes that the deal will be completed in the coming weeks and that it will post a NIS 5 million capital gain on the sale.
Published by Globes [online], Israel business news - www.globes-online.com - on May 22, 2018
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