Is a merger deal in US fuel stations on the cards? EZ Energy Ltd. (TASE:EZ), controlled by Dr. Eli Zahavi, is examining the acquisition of Petro Group Ltd. (TASE:PTGR), which has a market cap of NIS 54 million.
On Thursday, EZ Energy CEO Avi Geffen surprised a Petro Group bondholders meeting in Tel Aviv, saying, "EZ Energy has fuel stations in the US, and I propose adding Petro Group's stations to our portfolio, who says he has received proposals from go betweens to buy control of Petro Group. He says a merger of the two companies' businesses could lead to annual savings of $8-10 million.
Petro Group's main asset, GPM, operates fuel stations in the Eastern US. The company has 214 sites, which include convenience stores attached to fuel stations. It owns 25 of the sites and leases 189 on long-term leases. It also sublets 31 sites to third party operators to which it sells fuel.
Published by Globes [online], Israel business news - www.globes-online.com - on May 2, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010