Koor would have reaped a large capital gain had it sold half its stake in the agrochemicals maker.
Koor Industries Ltd. (TASE:KOR) has called off talks to bring in a partner for Makhteshim Agan Industries Ltd. (TASE: MAIN) after three weeks of negotiations with an international company. Had the sale gone forward, Koor, a unit of IDB Holding Corp. Ltd. (TASE:IDBH), would have reaped a huge capital gain.
Koor earlier announced that it planned to sell up to half of its stake in agrochemicals maker Makhteshim Agan, amounting to a maximum of 19.7% of the company, which will still leave Koor as the controlling shareholder. Makhteshim Agan has a market cap of NIS 2.9 billion.
Had Koor sold 19.7% of Makhteshim Agan at the prevailing market price, it would have made a capital gain of NIS 1.72 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on May 12, 2008
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