Azrieli Group Ltd. (TASE: AZRG) will post a profit of NIS 355 million on the sale of Supergas to Elco Holdings Ltd. (TASE: ELCO). This morning, Azrieli reported that a deal had been signed for the sale of its entire holding in Granite Hacarmel Investments Ltd., which wholly owns Supergas Israel Gas Distribution Company Ltd., for just over NIS 1 billion less the net debt of Granite Hacarmel, Supergas, and its subsidiaries on the closing date.
According to the report to the Tel Aviv Stock Exchange, Supergas had revenue of NIS 188 million in the first quarter of this year, and posted a net profit of NIS 30 million. This represents a decline from revenue of NIS 572 million and a profit of NIS 61 million in the fourth quarter of 2018.
The deal is expected to close in October this year. Elco agreed to pay NIS 10 million as an advance payment on eth dta the deal was signed. If the deal is not closed by October 31, Elco will pay a further NIS 40 million on account.
Supergas was founded in 1953. It designs gas operating systems, and providing solutions for the domestic, agricultural, commercial and industrial markets. Its subsidiary Supergas Natural supplies CNG (Compressed Natural Gas) from its plant in Alon Tavor.
Elco holds three listed companies: contractor Electra; Electra Consumer Products (which owns Golan Telecom); and Electra Real Estate, which develops residential clusters in the US. Elco, which has a market cap of NIS 2.1 billion, also owns the Globus Max chain of movie theaters.
Published by Globes, Israel business news - en.globes.co.il - on July 28, 2019
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