Elran (formerly Ellern) today notified the Tel Aviv Stock Exchange that it had agreed with Nochi Dankner to buy 17.6% of Israel Salt Industries (TASE:SALT) for $33.5 million.
Elran will also buy 10.8% of Dor Chemicals for $8.18 million. Under the agreement, the acquisition will be completed by April 30, 2003. If the deal is not completed by this date, Elran is entitled to call off or postpone the deal.
At the same time, Salt Industries, controlled by the two branches of the Dankner family, announced this week it was conducting advanced negotiations for an agreement with Nochi Dankner’s family. Under this agreement, Salt Industries will sell its 1.93% Bank Hapoalim (LSE:BKHD; TASE:POLI) stake to Nochi Dankner, at a value reflecting a 1.1 multiple for the bank’s equity.
This price, reflecting almost double the Bank Hapoalim share’s market value, amounts to $53-60 million, of which $5 million will be deposited as security for the first payment. The payment is subject to various conditions, including approval by a Salt Industries shareholders meeting. Another $5 million depends on certain events taking place, including Nochi Dankner’s acquisition of the IDB controlling interest, and a restructuring of the Dankner family holdings, under which Elran is slated to acquire control of Salt Industries, Dor Chemicals, and Dankner Investments.
Published by Globes [online] - www.globes.co.il - on February 20, 2003