Israel Land Development is reexamining the NIS 400 million deal, in light of its improved financial situation.
Sources inform ''Globes'' that Israel Land Development Company (Nasdaq:ILDCY; TASE:ILDC) (ILD) has frozen plans to sell the Seven Stars Mall in Herzliya, in light of ILD's improved financial situation. The company, which is controlled by the Nimrodi family, announced in April that it was negotiating with several interested parties to sell its subsidiary, Israel Land Development Malls and Shopping Centers Ltd., which owns the Seven Stars Mall.
The most serious negotiating partner was apparently Nitsba Holdings (TASE:NTBA), which is owned by the Egged transportation cooperative. Nitsba confirmed in an announcement to the Tel Aviv Stock Exchange (TASE) that it was in preliminary negotiations over the possible acquisition of the mall.
Apparently, negotiations were put on hold due to an improvement in ILD's financial situation, resulting in part from the sale of cable company Matav shares, and subsidiary ILD Insurance Co.'s (TASE:ILDH) initial public offering. The Seven Stars Mall's price tag is believed to be NIS 400 million, with proceeds of NIS 100 million going to ILD.
Published by Globes [online] - www.globes.co.il - on Sunday, July 18, 2004