KMN Capital Ltd. (TASE:KMNK-L), controlled by chairman Roy Elroyi, made two announcements today. The first is that a financial investor is in talks to invest NIS 65 million in an indirect subsidiary, Mendelson Group. The second is the settlement of a dispute between US indirect subsidiary Piedmont Aviation Component Services LLC and its subsidiary First Aviation Services Holdings Inc.
The settlement in the Court of Chancery of the State of Delaware means that all of KMN's units should be able to publish their financial reports at the same time. Piedmont is held through TAT Technologies Ltd. (Nasdaq:TATT; TASE:TATTF)
Sources inform ''Globes'' that the debt recycling fund Origo is the private investor with which KMN is negotiating the investment in Mendelson Group. Origo manages NIS 1.3 billion.
Under the deal being formulated, Origo will invest NIS 65 million Mendelson Group, which is engaged in water infrastructures, in exchange for a 43.33% stake in the company. NIS 50 million will be injected into Mendelson Group at a company value of NIS 100 million, before money, and NIS 15 million will go to KMN for the purchase of shares.
Mendelson Group is a subsidiary of KMN Water (formerly Kaman Trade), the infrastructures arm of KMN Capital.
KMN's share price was unchanged today at NIS 0.57, giving a market cap of NIS 48 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 17, 2011
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