Digal Investment and Holdings Ltd. (TASE: DIGL) today announced that it has received an offer to buy all its holding in the Nof Zion residential project in Jerusalem and in Kilas Investment Corporation. The company did not disclose the identity of the potential investor, or any details of the offer.
Digal wholly owns the Nof Zion land and owns 50% of Kilas, with the other half held by the brother of Digal's controlling shareholder, Yehuda Levi. The sale of the assets is subject to the brother's agreement to sell his holdings in Kilas and Nof Zion, so that, after the sale, the buyer will fully own the company and the project.
Digal said, "If and when we receive approval from Bank Leumi (TASE: LUMI) for the structure of the proposed investment, the company will try to raise financial resources to pay the balance of financing needed for the debt settlement with the bondholders."
The Nof Zion project aroused controversy when "Globes" reported that its proposed buyer was American-Palestinian investor Bashar Al-Masri.
Digal's share price fell 0.2% by mid-afternoon today to NIS 0.54, giving a market cap of NIS 4 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 27, 2010
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