Nochi Dankner may put his private tourism business on the Tel Aviv Stock Exchange (TASE) through a party at interest deal. Last week, IDB Holding Corp. Ltd. (TASE:IDBH), which he controls and serves as chairman and CEO, notified the TASE that it was considering the acquisition of Ganden Tourism and Aviation Ltd., which he also controls. IDB stated that the deal would be carried out through wholly-owned subsidiary IDB Development Corporation.
A deal is still in the preliminary stages, and if it is carried out, it will only be in five months. A deal would probably be in cash not shares.
Ganden Tourism owns Israir Airlines and Tourism Ltd., as well as Natour - Travel Agents Association for Organized Tours Ltd., Unitel Tourism and Aviation Ltd., and Yossi Tours Ltd. IDB has appointed Yitzhak Suari to valuate Ganden Tourism for the deal.
If the deal goes through, then IDB Development will hold two tourism groups: Ganden Tourism and Clal Tourism Ltd. Clal Tourism's holdings include a 70% stake in Diesenhaus - Unitours Ltd., which represents Royal Jordanian and Russian airlines. If IDB takes over Ganden Tourism, it intends to consolidate it with Clal Tourism.
IDB stated that synergy, streamlining, and savings by the two tourism groups were the goals of such a merger.
Israel's tourism industry had a tough year, and is now undergoing consolidation. Since economies of scale are important in the industry, a merger of Clal Tourism and Ganden Tourism can be expected to improve their profit margins.
Published by Globes [online], Israel business news - www.globes-online.com - on April 13, 2009
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