Koor Industries (NYSE: KOR; TASE: KOR), of the IDB Group, controlled by Nochi Dankner, published a tender offer to purchase 22 million shares of MA Industries (Makhteshim Agan) (TASE: MAIN), representing 5.06% of the chemicals company. Koor offered NIS 16.2 per share, 10.7% less than Makhteshim Agan’s closing price on the Tel Aviv Stock Exchange today. Altogether, the offer is worth NIS 356.4 million.
Koor currently holds 180.4 million Makhteshim Agan shares, representing 41.5% of the company. It is believed that Koor seeks to raise its stake above 45%, hence the special offer.
The offer is to all shareholders. Koor is committed to make the purchase if it receives a positive response from offerees holding 5% of Makhteshim Agan.
Discount Investment Corporation (TASE: DISI), also of the IDB group, has announced that it will not accept the offer. The final date for acceptance is September 10.
Offers to purchase are generally made at a price above market, but it appears that the company fears a fall in prices on the Tel Aviv Stock Exchange in the near term, and prefers to close the price of the share at the offer level for the next few weeks.
Published by Globes [online], Israel business news - www.globes.co.il - on August 17, 2009
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