Sources inform ''Globes'' that the Livnat family, Nochi Dankner's longstanding partner in the controlling interest in IDB Holding Corp. Ltd. (TASE:IDBH), plan to leave the holding. In its stead, the Livnat family will acquire Mashav Initiatives and Development Ltd., which owns 75% of Nesher Israel Cement Enterprises Ltd., from IDB holding company Clal Industries and Investments Ltd. (TASE: CII) for NIS 2.5 billion.
The Livnat family reportedly does not intend to sell its IDB shares, but only to terminate its control agreement with Dankner. This would free the Livnats from the single borrower restrictions which apply to them as a party in IDB, and enable them to secure the financing needed to acquire Mashav.
Mashav also owns 50% of haulage and logistics company Taavura Holdings Ltd. The Livnat family owns the other half; the acquisition of Mashav will give the Livnats full control of the company.
The Livnat family owns 13.3% of IDB Holdings, constituting part of its controlling core with Nochi Dankner and Yitzhak Manor. They acquired the holding in May 2003 from the Recanati and Carasso families. IDB has since distributed NIS 5 billion in dividends, giving the buyers a full return on their investment.
For the Livnats, Clal Industries' Mashav stake was the main reason to participate in acquisition of the controlling core of IDB nine years ago, as well as the talks to acquire 40% of Clal Industries from IDB before they were called off last month.
For IDB, the sale of Mashav would net it a capital gain, as Clal Industries books that company at a value of only NIS 850 million. The sale would also enable IDB to keep the controlling interest in Clal Industries, which owns several valuable holdings, including Clal Biotechnology Industries Ltd. (TASE: CBI), on which the company pins high hopes.
Avraham Livnat (86) is the patriarch of the family and founder of Avraham Livnat Ltd., and he has three sons in the business: Zeev, Zvi, and Shay. The family company's main holding is its 50% stake in Taavura, whose operations include a monopoly on cement haulage and therefore a critical vendor for construction and concrete companies. Taavura also has a monopoly on car carrying, and its numerous subsidiaries include Maman Cargo Terminals and Handling (TASE: MMAN), which handles air cargo services at Ben Gurion Airport; earth moving and mining; and the importing of trucks, heavy engineering equipment, and tires. The family also owns a stake in Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) and its affiliate JOEL Jerusalem Oil Exploration Ltd. (TASE: JOEL), controlled by Kobi Maimon, giving the family real estate and gas exploration interests.
Published by Globes [online], Israel business news - www.globes-online.com - on February 5, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012