Isal Amlat Investment Ltd. (TASE:ISAL), a subsidiary of Roni Elroyi-controlled KMN Holdings Ltd. (TASE:KMNH), today notified the Tel Aviv Stock Exchange (TASE) that it was in talks to sell vehicle battery manufacturer Schnapp Ltd. (TASE: SHNP). Isal said that it plans to sell 4.23 million Schnapp shares, amounting to 31.6% of the company. The talks come just a month after Isal sold 3% of Schapp for NIS 4.3 million.
The "Globes" website today revealed that the probable buyer of Schnapp is Sky Fund. The sale price will probably be less than Schnapp's opening price today of NIS 13.68. The share price rose 12% in December. The share price w.3% today to NIS 13.36, giving a market cap NIS 173 million, which means that Isal's stake is worth about NIS 58 million.
Isal and Schnapp's founding families own the 37.6% controlling interest in the company. The controlling agreement signed by the parties in 2007 stipulates that a party seeking to sell its stake requires approval of the other parties. The agreement includes a rights of first refusal mechanism, as well as tag-along rights to the sale or purchase of Schnapp shares.
Schnapp is considered a leader in its industry. Most revenue comes from domestic sales.
If Isal sells its Schnapp holding, it will part of KMN's effort to improve its financial condition. KMN lost NIS 27.3 million in the third quarter of 2010. KMN owns 81.7% of Isal. KMN's share price rose 0.5% to NIS 0.60, giving a market cap of NIS 50 million, and Isal's share price fell 5.4% to NIS 5, giving a market cap of NIS 75 million.
Sky Fund was founded in 2005. It has raised one fund to date, and manages $120 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 10, 2011
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