Inrom Group (TASE: INRM) has notified the Tel Aviv Stock Exchange (TASE) that it has signed an agreement with Negev Kibbutzim Nir Oz and Nirim to buy the 37.8% stake in Nirlat Paints. Inrom will allocate 16,260,000 of its shares to the kibbutzim reflecting a value of NIS 266 million. When completed, the deal should see Inrom's market cap exceed NIS 2 billion, while the kibbutzim will hold a 13% stake in Inrom.
Inrom already holds a controlling $62.2% stake in Nirlit so upon completion of the deal, it will become a fully owned subsidiary.
The deal is dependent on approval from the TASE for the kibbutzim to hold Inrom's shares and from the Israel Tax Authority for a "merger by swapping shares."
Inrom CEO Noam Tsalka said, "We are satisfied about the move to strengthen the good long-term partnership we have with Kibbutzim Nir Oze and Nirim and delighted that they are becoming shareholders in the entire group. Nirlat is the biggest activity in the Group and buying the balance of the shares will make it fully owned by the Group and strengthen the Inrom Group and allow realizing the accelerated development and expansion of Nirlat, according to the strategic plans and target that we have set in order to ensure and consolidate the long term growth of the Group in general and Nirlat in particular.
Published by Globes, Israel business news - en.globes.co.il - on March 21, 2021
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