Nochi Dankner is selling his holding in GVT to Shaul Shani's Swarth Group. Dankner's IDB Development Corp. Ltd. (TASE: IDBD) and its subsidiary, Discount Investment Corporation (TASE: DISI), are each selling their 16.44% of GVT Holding NV (GVT Antilles). GVT Holding owns GVT Holland BV, which in turn holds 22.9% of Global Village Telecom Ltda. (GVT) (Bovespa: GVTT3) (GVT Brazil).
The companies will sell their holdings in two stages, with the actual sale price for GVT Brazil determined by the payments received.
Nochi Dankner controls IDB Development through IDB Holding Corp. Ltd. (TASE:IDBH), where he is chairman and CEO.
In the first stage, GVT Holland will sell five million shares of GVT Brazil, 3.9% of the company, to Swarth Group, for 29.75 Brazilian real per share (a total of $83.4 million at the current dollar/real exchange of $1/1.784). Immediately after the completion of the first part of the sale, the payment will be transferred from GVT Holland to GVT Antilles. The funds will enable GVT Antilles to acquire 8.5% of its shares from IDB and Discount Investment.
In the second stage of the transaction, GVT Holland will grant Swarth Group an option to acquire 4.66 million additional shares of GVT Brazil (3.6% of the company) at 32.725 real per share (a total of $85.5 million at the current dollar/real exchange of $1/1.784). After completion, the second payment will be transferred from GVT Holland to GVT Antilles. The net payment will enable GVT Antilles to purchase the balance of the holdings of IDB and Discount Investment Corporation in GVT Antilles.
If both parts of the deal are completed then IDB and Discount Investment will record aggregate capital gains of NIS 78-272 million.
Published by Globes [online], Israel business news - www.globes-online.com - on September 14, 2008
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