Ford and Mazda importer Delek Automotive Systems Ltd. (TASE: DLEA) is in talks with Kamor Ltd. (TASE: KMOR) to acquire control of BMW importer Kamor Motors Ltd. (TASE: KMRS) at a company value of NIS 245 million, compared with today's opening market cap of NIS 159 million.
Kamor's share price rose 35% in early trading today to NIS 12.15, giving a market cap of NIS 270 million. Kamor Motors' share price rose 28.8% to NIS 16.10, giving a market cap of NIS 200 million, and Delek Auto's share price rose 1.5% to NIS 37.19, giving a market cap of NIS 3.4 billion.
Delek Auto chairman Gil Agmon controls the company, after acquiring the majority stake in it from Yitzhak Tshuva-controlled Delek Group Ltd. (TASE: DLEKG). Kamor CEO Dan Brenner owns 63.8% of the company, which owns 64.21% of Kamor Motors.
Delek Auto said that closing the deal is subject to a full buy-back of Kamor Motors' shares by Kamor, based on the proposed company value of Delek Auto's offer. A deal is also subject to approval of Kamor Motors' suppliers, the Antitrust Authority, and other regulators.
Delek Auto said that it had not announced the negotiations until now, because premature disclosure was liable to affect the deal and worsen the terms.
Published by Globes [online], Israel business news - www.globes-online.com - on July 10, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011