Sources inform “Globes” that Israel Phoenix Assurance (TASE: PHOE1;PHOE5) financed Movilei Dror & Co. CEO Avshalom Nuriel’s entire purchase of 15% of Knafaim-Arkia Holdings (TASE: KNFM). Israel Phoenix lent Nuriel $25 million, which he paid Koor Industries (NYSE: KOR; TASE: KOR) last week in return for its shares in Knafaim.
Israel Phoenix confirmed that a deal was concluded, but declined to disclose details. Israel Phoenix chairman Dr. Arie Ovadia, legal advisor Shirit Kasher, and the company’s investment team led the process. The deal is strictly financial; Israel Phoenix has no plans to intervene in management. No response from Nuriel was available by web posting.
This is not the first time that Israel Phoenix has financed an acquisition deal by other parties. Last July, the company helped finance Yitzhak Tshuva-controlled Delek Real Estate’s acquisition of control in Dankner Investments (TASE: DKNR) from the Dankner family.
Israel Phoenix lent Tshuva $29 million on that occasion, half the total price of $58.5 for 87.5% of Dankner Investments. Ovadia also led that deal.
The terms of the loan to Nuriel are unknown. The loan to Delek Real Estate was index-linked, for ten years, at 6.25% interest. Nuriel probably did not obtain better terms.
A week ago, Koor sold 19% of Knafaim, out of a total holding of 28.3%. Nuriel bought 15%, Knafaim-Arkia CEO Prof. Israel (Izzy) Borovich 3%, and Tami Mozes-Borovich, the wife of Oded (Dedi) Borovich, 1%.
Koor’s two representatives on the Knafaim-Arkia board of directors, CEO Jonathan Kolber and president Dan (Dani) Biran, resigned yesterday. Koor announced that its agreement with the Borovich family, which granted the right to appoint two members to the Knafaim-Arkia board, was no longer valid.
Published by Globes [online] - www.globes.co.il - on October 5, 2004