Cybele Investment House Ltd. has cancelled its agreement to acquire Alumot Investments House (Sprint) Ltd. (TASE: ALST-L) from after Bituach Haklai Central Cooperative Society Ltd two months after it signed the deal. After conducting due diligence on Alumot Sprint, Cybele asked Bituach Haklai to lower the price of the deal and to amend other terms, but was refused.
So far as is known, following the due diligence, Cybele wanted to change the structure of the acquisition, and offered to inject part of the proceeds into Alumot, and to transfer part of the proceeds to Bituah Haklai in the future. The total price tag would be around the original amount of the deal. Bituah Haklai rejected the proposal.
Bituah Haklai chairman Doron Sett said, "Cybele, which was familiar with the investment house before the deal, tried to change the structure of the deal. This is not a matter of money, and it won't work. We're under no pressure, and we're taking Alumot off the shelf. We'll develop Alumot vis-à-vis the kibbutzim and outside the sector as well, giving the investment house a chance with a stable ownership."
Alumot's share price fell 11.4% to NIS 3.10, giving a market cap of NIS 10 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 8, 2010
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