Electra Consumer Products Israel Ltd. has completed a major transaction ahead of its reissue on the Tel Aviv Stock Exchange (TASE). Elco Holdings Ltd. (TASE: ELCO) wholly-owned subsidiary Electra Ltd. (TASE: ELTR) has sold 10% of the company to Bank Leumi (TASE: LUMI) unit Leumi Partners Ltd. for NIS 100 million, reflecting a company value of NIS 1 billion.
Leumi Partners will seek other investors to buy an additional 10% stake in Electra Consumer Products, and will assist Elco in floating the company. Elco, controlled by chairman Georg Salkind, will pay Leumi Partners NIS 5 million for these services.
In early March, Electra Consumer Products submitted a draft prospectus to the Israel Securities Authority, although it did not state either the structure of the offering or its price. Elco delisted Electra Consumer Products from the TASE two and a half years ago after an offer to purchase at a company value of NIS 800 million in late 2007. After the delisting, Electra Consumer Products' profitable business - the marketing of electrical consumer products in Israel - was split from its loss-making air conditioner manufacturing and selling business, most of which is conducted in Europe.
Published by Globes [online], Israel business news - www.globes-online.com - on April 1, 2010
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