Koor Industries (NYSE: KOR; TASE:KOR) announced today that it had sold 27 million shares in agri-chemicals company MA Industries (TASE:MAIN) for NIS 418.5 million, equivalent to approximately $ 95.1 million on the date of sale to UBS Securities Israel Limited.
The sale was conducted at NIS 15.5 per share, representing a 3.9% discount on MA Industries closing price on Tuesday.
Following the transaction, Koor will hold 41.3% of the voting capital of MA Industries.
Koor said it expected to record a capital gain of approximately $36 million from this transaction, and an increase in its deferred tax asset to $4-5 million in the fourth quarter of 2003, in addition to the $8 million deferred tax asset relating to the holding already recorded in the third quarter 2003. The exact capital gain recorded will be determined when the financial statements, for the two respective periods, are compiled.
Koor CEO Jonathan Kolber said, "This sale conforms with the announcement made in Koor Industries' last quarterly results press release in which we stated our intention to sell 5-6% of MA Industries. Following MA Industries' tremendous financial and share performance, and taking into account that MA Industries constitutes a substantial share of Koor's net asset value, Koor's management took the opportunity to monetize part of that value, further improving Koor's financial position and reducing its net debt". Kolber continued, "As part of the transaction, Koor has committed not to sell any additional shares of MA Industries, other than to provide shares for an over allotment option in connection with any potential public offering by MA Industries, during the 120 days following the transaction".
Published by Globes [online] - www.globes.co.il - on January 14, 2004