Following Income Tax Commissioner's decision to allow them to purchase
only 20% of NZBE.
Ashtrom and Granite Hacarmel Investments on Monday called off the
deal with Egged member owned NZBE, giving them an option to purchase
another 5% of NZBE shares, after the Income Tax Commissioner informed
the two companies he would allow them to purchase only 20% of NZBE. The
companies intended to purchase 25% of the company, and last September
received an option to buy another 5% of the company within three
years.
Ashtrom and Granite decided to accept commissioner Doron Levi's verdict,
and will not appeal against it to the district court. They will do with
20% of NZBE, 10% each.
Levi's decision, and the shekel rate devaluation, caused the financial
volume of the deal to drop considerably. Ashtrom and Granite on
Tuesday, January 9, will pay NZBE some 42.8 million dollars for 20% of
the company, added to the 1.5 million dollars previously paid to NZBE.
The two companies will pay NZBE a total of 44.3 million dollars, instead
of 57.4 million dollars set in the original deal