Leumi Partners Ltd., the investment banking arm of Bank Leumi (TASE: LUMI), has signed an agreement to acquire 11.26% of Avgol Nonwoven Industries Ltd. (TASE:AVGL), and an option for an additional 8.32%, for NIS 110 million from Israel Petrochemical Enterprises Ltd. (TASE:PTCH), the Goldwasser family, and other investors. The deal was closed on the day of the signing.
The option is exercisable for three years at a strike price of NIS 3.25 per share, net of dividends.
Avgol manufactures nonwoven fabrics for diapers and the hygiene industry. The company has factories in Israel, the US, China, and Russia.
Avgol's share price rose 0.3% today to NIS 2.78, giving a market cap of NIS 825 million. Petrochemical Industries' share price rose 3.6% to NIS 11.60, giving a market cap of NIS 341 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 29, 2011
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