Koor expects to record a NIS 7 million capital gain.
The Koor concern sold its 51% holding in Merkavim to Mayer's Cars and Trucks, importers of Volvo, for $17.5 million. The deal is expected to yield a capital gain of NIS 7 million for Koor, Koor told "Globes" today.
Koor said the sale of its holdings in Merkavim was part of its strategy of divesting itself of holdings not part of the concern's core business.
The remaining shares in Merkavim are held jointly by Volvo Bus Corporation, Volvo's bus subsidiary, and Mayer, giving Mayer control of Merkavim.
"Globes" has further learned that Mayer imports buses and bus chassis, which it assembles at Merkavim and at Haargaz. The acquisition will apparently save Mayer costs and promote marketing of Volvo buses in Israel
Merkavim sales this year amounted to $90 million. The company has 250 employees.
Published by Israel's Business Arena on December 8, 1999