Uri Dori Engineering Works Corp. (TASE: DORI) controlling shareholder Acad Building & Investments Ltd. has signed an MOU with Alex Dembitzer, and owner of New York-based Northern Group Inc., under which it will acquire half of Acad’s 90% stake in Dori Engineering. Dori Engineering president Uri Dori will continue to own the other half of Acad’s stake. Under the MOU, Dembitzer will give the Uri Dori a $31 million owners loan for the Acad shares, reflecting a market cap of $69 million for Dori Engineering. The deal is subject to due diligence.
Uri Dori will use $19 million of the proceeds to buy out the 33% stake in Acad held by Amethyst, owned by Ronen Kristal. Under an earlier agreement between Dori and Kristal, they agreed that if Uri Dori was unable to raise the purchase price by September, Kristal could buy Uri Dori’s stake in Acad under a price to be set in a buy-me-buy-you deal.
Under the agreement with Dembitzer, Uri Dori will continue as president of Dori Engineering. Dori Engineering is currently building 3,500 apartments in Israel and has contractors orders worth NIS 650 million. The company recently reported that a foreign investor had agreed to acquire a third of Dori’s Polish venture Ronson Development Group for €52.5 million. Ronson is building 2,200 apartments in Poland.
Dori Engineering posted a net profit of NIS 500,000 on NIS 163 million revenue for the second quarter of 2006.
Northern Group owns over one million sq.m. of property in major US city centers.
Published by Globes [online], Israel business news - www.globes.co.il - on September 10, 2006
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