Ma'ariv Holdings Ltd. (TASE: MARV) chairman Zaki Rakib may inject up to NIS 40 million directly into financially troubled Hebrew daily "Ma'ariv". The injection would give him a 60% holding in the newspaper subsidiary Ma'ariv-Modi'in Publishing House Ltd., held through a subsidiary, without changing his stake in Ma'ariv Holding. Part of the capital injection might be made immediately.
Ma'ariv-Modi'in is responsible for publishing the newspaper and its products, and for operating the printer.
Ma'ariv Holdings notified the TASE that Rakib has promised the capital injection, subject to certain conditions, including the sale of the printer, the conversion of his owner's loan into Ma'ariv shares, and cancelling Ma'ariv-Modi'in guarantees to Ma'ariv Holdings.
Proceeds from the sale of the printer would go toward repaying Ma'ariv's NIS 106 million debt to Bank Hapoalim (TASE: POLI), which has a lien on the printer.
Published by Globes [online], Israel business news - www.globes-online.com - on March 15, 2011
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