Oil Refineries Ltd. (TASE:ORL) and Delek Group Ltd. (TASE: DLEKG) have made an offer to purchase the public's holding in Gadot Biochemical Industries Ltd. (TASE: GDBC) at NIS 13.17 per share, a premium of 12.5% on Wednesday's closing price, for a total of NIS 18.8 million. The public owns 1.4 million shares of Gadot Biochemical, amounting to 12.5% of the company.
Gadot Biochemical's share jumped 34.8% at the opening on the TASE to NIS 15.79, giving a market cap of NIS 131.5 million - above the offer price.
Delek Group owns 7.2 million Gadot Biochemical shares through subsidiary Delek Investments and Assets Ltd., amounting to 64.11% of the company, and Oil Refineries owns 2.6 million shares, amounting to 23.15%. Israel Corporation (TASE: ILCO) owns 45.08% of Oil Refineries and Israel Petrochemical Enterprises Ltd. (TASE:PTCH) owns 15.76%.
If the offer to purchase is successful, Oil Refineries and Delek Infrastructures will buy the public's share on a proportional basis to their current holdings in the company. Delek Infrastructures will buy 1.05 million Gadot Biochemical shares, raising its stake in the company to 73.47% and Oil Refineries will buy 379,600 shares, raising its stake to 26.53%.
The deadline to respond to the offer is June 22.
Published by Globes [online], Israel business news - www.globes-online.com - on May 31, 2009
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