A week after losing control of the IDB Development-Discount Investment group, Eduardo Elsztain has petitioned the court to allow him to buy the controlling stake held by IDN Development in Discount Investment (70%) for NIS 908 million.
Elsztain controls listed company IRSA (Inversiones y Representaciones Sociedad Anónima - NYSE: IRS) which held IDB Development and Discount Investment through its Dolphin subsidiary. The other week, Tel Aviv District Court judge Hagai Brenner ordered the liquidation of IDB Development and appointed a trustee to run the company.
The judge also appointed a receiver for the 70% stake in Discount Investment, on which IDB Development's 14 series bondholders hold a lien securing the company's NIS 890 million debt to them.
Dophin is now offering to buy the shares in Discount Investment for an immediate payment of NIS 770 million plus NIS 138 million a year from the deal date.
Judge Brenner decided that the receivers for the shares, Adv. Alon Binyamini and Adv. Raanan Kalir, should respond to Elsztain's offer by October 8, and that Elsztain would have until October 11 to respond to their answer. Elsztain filed his request after Binyamini and Kalir filed an urgent request to the court to replace the directors of Discount Investment and oust Elsztain and his representatives from the board.
Discount Investment holds controlling stakes in Property and Building Ltd. (TASE: PTBL ), Cellcom, Mehadrin Tnuport Export LP (TASE: MEDH ), Elron Electronic Industries Ltd. (TASE: ELRN ), and Epsilon Investment House Ltd. .
Elsztain has already invested some NIS 3 billion in the IDB-Discount Investment group, which he now stands to lose entirely.
Published by Globes, Israel business news - en.globes.co.il - on October 4, 2020
© Copyright of Globes Publisher Itonut (1983) Ltd. 2020