In the latest twist in the Ocif Investments and Development Ltd. (TASE: OCIF) sale, Isras Investment Co. (TASE: ISRS), controlled by Shlomo Eisenberg, won the auction for Arcadi Gaydamak's 3.7 million shares in company, with a bid of NIS 135 million. Isras will transfer NIS 120 million to Mizrahi Tefahot Bank (TASE:MZTF) to cover Gaydamak's debt. Gaydamak will receive the balance. The Tel Aviv District Court has to approve the sale.
Mizrahi Bank obtained a foreclosure on its lien on Gaydamak's 63.8% stake in Ocif, when the company failed to comply with the terms of loan Gaydamak took to buy the stake. He will still own a stake in the company, through 200,000 shares on which Mizrahi Bank had no lien, and were therefore not included in the sale.
The auction was held at the offices of the court-appointed receiver for the Ocif shares. Only one other company participated in the auction: Trading Corporation, a group of US investors headed by Avi Dan of New York. Bayshore bowed out of the auction at NIS 134 million.
Trading in both Isras and Ocif shares on the TASE was suspended during the auction.
Published by Globes [online], Israel business news - www.globes-online.com - on October 15, 2008
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