Solar water heater manufacturer Chromagen Ltd. will distribute its first-ever dividend of NIS 3.5 million. The dividend amounts to NIS 30,000 for each family of the Kibbutz Shaar Ha'Amakim, which owns the company together with Tene Capital
Among the reasons for distributing the dividend is optimism from the successful start of Chromagen's deal with AO Smith Corporation (NYSE: AOS) of the US, the largest manufacturer of water heaters in the world.
Under the contract, Chromagen is the exclusive supplier of solar water heaters to AO Smith in North America. The contract is potentially worth hundreds of millions of shekels over the coming years. AO Smith manufactures 8.5 million water heaters a year.
Kibbutz Shaar Ha'Amakim will receive NIS 2.25 million of the NIS 3.5 million dividend, with Tene Capital receiving the rest, on the basis of their stakes in the company.
Published by Globes [online], Israel business news - www.globes-online.com - on June 23, 2010
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