Sources inform "Globes" that Tedea, controlled by The First Israel Mezzanine Investors (FIMI) Fund, and a management group headed by businessman Mota Gorfung, is negotiating acquiring control of Arpal Aluminium Systems, which is in need of an injection of capital.
Under consideration at Tedea is the idea of making all or part of the investment via the Marathon Venture Capital Fund, in which Tedea has a 30% stake.
Marathon last year resolved to freeze new investment in venture capital companies, electing to focus, instead, on spotting investments in high-yield industrial companies. Marathon has cash reserves and short- term investments of NIS 28 million. Another shareholder in the fund is the Investment Corporation of United Mizrahi Bank (20%).
In the transaction currently being formulated, Tedea-Marathon will acquire shares owned by Yoram Livneh, who holds 33.6% of Arpal, and will also inject capital into the company as against the allocation of additional shares. The total planned investment in the shares of Arpal will be $8 million, which will procure Tedea one half of the controlling shares in the company.
Mordechai Emek, who holds 34% of shareholders’ equity, is expected to continue to form part of the controlling core in Arpal, which, this morning was trading at a value of $9 million.
Arpal operates in the fields of development of aluminium systems for construction and in the marketing of components for these systems and other products designated for the building shells and apertures. The company’s growth engine is bullet-proof windows, mainly addressed by subsidiary company Oldcastle-Arpal which operates in the US.
Arpal holds 50% of the shares of the subsidiary, while Oldcastle Glass of the US holds the balance of the shares.
Published by Globes [online] - www.globes.co.il - on Tuesday, September 07, 2004