Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) will acquired 10% of Eastern European business park developer Europort Ltd. (TASE:ERPT.B1) for $2.5 million. Clal Insurance also received an option to acquire an additional 10% of the company for $5 million by July 2008.
The acquisition reflects a company value of $25 million for Europort, and the option reflects a company value of $50 million. Europort's shareholders' equity was $10 million at the time of its bond issue in May 2007.
Clal Insurance is acquiring the stake through Clal Insurance Company, Meitavit Atudut Pension Funds Management Company Ltd., and Clal Gemel Ltd., which manages provident funds.
Europort managing director Mordechai Kirschenbaum founded the company with a group of investors. He owns 31% of the company. He was the developer behind Airport City Ltd. (TASE:ARPT) business park near Ben Gurion Airport. Other shareholders are France's Banque Societe Generale, with a 10.5% stake and Israel Discount Bank (TASE: DSCT), with 13.3%.
Published by Globes [online], Israel business news - www.globes-online.com - on December 17, 2007
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