Leviathan partner Ratio Oil Exploration (1992) LP (TASE:RATI.L) controlling shareholders Yigal Landau and Ligad Rotlevy have settled the lawsuit with Globus International Construction and Development Investments Ltd. and its owner, Shlomi Shukrun. Ratio's controlling shareholders will allot 15% of their participation units to trustees who will sell them to third parties and transfer the proceeds to Globus.
A few months ago, talks to sell the Ratio participation units to Premium (PIH) Holdings Ltd. (TASE: PIH), controlled by Yuli Ofer, broke down without a deal.
The dispute between Ratio and Globus broke out in 2005, when Ratio sought to raise capital on the Tel Aviv Stock Exchange (TASE). Globus, a shareholder, sought to condition the issue on Ratio covering Globus's losses and guaranteeing its investment. Ratio agreed to allot 15% of its participation units to Globus and pay it a $2,000 monthly consultancy fee, but Globus later accused Ratio of breach of contract.
The case went to arbitration. In September 2010, after 15 meetings, Globus asked the courts to cancel the arbitration, on the ground that Ratio hired gang boss Meir Abergil to intervene and dictate the name of the arbitrator. Ratio countered that Globus was cynically trying to evade the proceedings after Ratio's company value rose in the wake of the Leviathan natural gas discovery. Tel Aviv District Court Judge Yehuda Zaft accepted Globus's petition, saying that the arbitration was taking place under the shadow of criminal figures.
Ratio's share price fell 2.7% today to NIS 0.359, giving a market cap of NIS 2.7 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on August 25, 2011
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