Tao Tsuot Ltd. (TASE: TAO-M) controlling shareholder Ilan Ben-Dov today improved his debt settlement offer to the investment house's bondholders: he will personally compensate bondholders for any loss resulting from the settlement, by buying shares the bondholders convert from their bonds. Under the original offer, Ben-Dov would increase his holding to 75% of Tao from 69.66%.
In a notice to the TASE, Tao said, "The controlling shareholder announced that he is prepared to directly personally compensate every current company bondholder who loses money as a result of the proposed settlement, taking into account the cost of buying the Series 2 and 3 bonds he holds. The compensation will be in the form of a free transfer of company shares held by the controlling shareholder to a bondholder who loses money as a result of the proposed settlement structure."
In the original offer Ben-Dov offered shares in Suny Electronics Ltd. (TASE: SUNY), through which he controls Orange franchisee Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) to Tao bondholders, in a deal that would result in a 60% loss in value on the bonds.
Ben-Dov's improved offer comes a day after Excellence Investments Ltd. (TASE: EXCE) CEO David Baruch told "Globes" that Ben-Dov's original settlement proposal was unacceptable and that he should personally pay for it.
Tao's share price fell another 2.8% in morning trading today to NIS 0.106, giving a market cap of NIS 34 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 20, 2011
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