Klil notified the Tel Aviv Stock Exchange today that its shareholder Discount Investments, which owns 72.4% of Klil, will sell a 67.5% stake in the company to London Stock Exchange-listed Geo Interactive (now Emblaze) co-founder Tzur Daboosh for NIS 97 million. Following the sale, Discount Investments will be left with 4.99% of Klil's shares.
Under the agreement between Discount Investments and Daboosh, the Klil shares will be sold at NIS 73.71 per share, 63% above the market price of NIS 45.13 as of this morning, reflecting a company value of NIS 88.6 million.
If the agreement is signed, Discount Investments will receive a put option to sell its remaining shares in the company at a price of NIS 73.71 per share. The value of Discount’s option will also be linked to the CPI and 0.5% will be added to the shares each month. Discount Investments will be able to exercise the option between September 6, 2002 and March 5, 2003. Daboosh will be given the right of first refusal in the event that Discount Investments wishes to sell more shares during this period.
Klil manufactures and markets aluminum profiles and other products for the construction industry. The company reported a loss of NIS 8.5 million for the first nine months of 2000, and has not yet published its fourth quarter financial reports. However, the poor security situation has undoubtedly negatively affected Klil's quarterly and annual results.
Published by Israel's Business Arena on 7 March, 2001