Fishman Holdings subsidiary Alliance Tire Co. ltd. (TASE: ALIN) today announced that Eliezer Fishman signed an MOU to sell his direct and indirect holdings in the company to a group of investors at a price reflecting a company value of $48 million, 20% above its market cap. Fishman promised in the MOU not to negotiate with third parties to sell the stake for ten weeks. During this period the buyers will conduct due diligence and complete negotiations for buying the shares.
Alliance Tire posted a NIS 14 million loss for the second quarter of 2006, mostly caused by foreign currency deals in the Turkish lira. Fishman promised to repay the company the money lost in those deals by the end of June 2007. If the sale of the controlling interest in Alliance Tires is closed before that date, Fishman has promised to repay the money on the date of the sale. In its announcement, the company said it could not assess the likelihood that the sale would be completed.
Alliance Tire had $16 million in shareholders’ equity at the end of June, financing a balance sheet total of $159 million. The company’s long-term debt rose slightly to $36.5 million, mostly due to the expansion of a bond series, and its short-term debt totals $116.5 million.
Eliezer Fishman is the controlling shareholder in “Globes”.
Published by Globes [online], Israel business news - www.globes.co.il - on October 12, 2006
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