Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL) subsidiary Merhav Ampal Energy Ltd., will acquire a 63.66% controlling interest in Gadot Chemicals Tankers and Terminals Ltd. (TASE: GDOT) from Netherlands Industrial Chemical Enterprises BV for NIS 348 million ($88.5 million). The company expects to close the deal the end of 2007. The Antitrust Authority must approve the acquisition.
Gadot Chemical Tankers and Terminals is Israel's leading chemical distribution company, which ships, stores, and distributes liquid chemicals, oils, and a wide range of materials.
Ampal chairman, president and CEO Joseph (Yossi) Maiman said, "This acquisition is another step toward achieving our goal of building a portfolio of assets with strong cash flow. We will work together with Gadot to further develop its business both in Israel and abroad”
Earlier this month, Ampal published its financial report for the third quarter. The company posted a consolidated net profit of $11.9 million ($0.22 per share) on $900,000 revenue, compared with a net loss of $1.8 million ($0.19 per share) on $400,000 for the corresponding quarter of 2006. The results included a capital gain from the sale of Am-Hal Ltd.
Ampal owns a stake in Egyptian natural gas supplier East Mediterranean Gas Company (EMG), and is investing heavily in ethanol and other energy ventures.
Ampal closed at $6.84 on Nasdaq yesterday, giving a market cap of $394 million. The share was almost unchanged in morning trading on the TASE today.
Published by Globes [online], Israel business news - www.globes-online.com - on November 20, 2007
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