Koor Industries Ltd. (TASE:KOR), of the IDB Holding Corp. Ltd. (TASE:IDBH) group, reported to the Tel Aviv Stock Exchange today that it will pay $45 million compensation to shareholders in Makhteshim Agan Industries Ltd. (TASE: MAIN) who are entitled to consideration in the sale of Makhteshim Agan to ChemChina.
Koor has held talks in recent weeks to reach a compromise over the class action brought against it concerning the structure of the deal for selling subsidiary Makhteshim Agan to ChemChina.
The deals calls for public shareholders to sell all their shares now, while Koor will keep most of its shares in Makhteshim Agan and receive a non-recourse loan, which amounts to a kind of option to sell its shares in the company in the future when their value is likely to be higher.
The lawsuit claims that it is unfair for the public to sell their shares at a certain price while the controlling shareholder has the possibility of selling its shares at a higher price.
A week ago, Koor lodged an appeal in the Supreme Court against a decision by the Tel Aviv District Court to accept the claim that Koor was not entitled to extra consideration.
Published by Globes [online], Israel business news - www.globes-online.com - on June 13, 2011
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