Plastro's rival Netafim has also made a bid.
Plastro Irrigation Systems Ltd. (TASE: PLSTR) announced today that its controlling shareholder, Kibbutz Gvat, has begun talks with US agricultural equipment company Deere & Company, for the sale of its stake in the company. The company said that no agreement had as yet been reached on the price, structure and timing of the sale. The size of the deal was not disclosed.
The acquisition of Plastro has aroused extensive interest. In April its rival Netafim Ltd. offered to acquire the company at NIS 11-13 per share. In early May, Kibbutz Gvat (through Gvat Agriculture and Business ACS Ltd.) tightened its grip on the company when it exercised its right of first refusal and acquired Australian billionaire John Gandel's stake, giving it 75% controlling interest in Plastro.
Gandel had originally agreed to sell his holdings to investment fund controlled by his representative in Israel, Plastro chairman Uri Yogev and several other Israeli investors, but Kibbutz Gvat blocked the move.
Published by Globes [online], Israel business news - www.globes.co.il - on June 10, 2007
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