After the withdrawal objections to a petition by Polgat (TASE:PLGT1; PLGT4) for the distribution of a NIS 152 million dividend, the Tel Aviv District Court today approved the distribution. Zvi Barinboim initiated the measure immediately after acquiring the controlling interest in Polgat, in order to recover two-thirds of the cost of the acquisition.
At the start of the hearing, Judge Danya Kereth-Meyer was notified of a decision to withdraw objections to the dividend by employees and others. The statement said that following negotiations between the parties and agreements reached by them regarding the acquisition of Polgat Textiles by Polgat, the court was asked to dismiss the objections.
The objections were filed by 140 Bagir employees, 470 Polgat employees, and the Baser family of Turkey, who were Polgat's partners in the Turkish company Guney Polgat. The statement added that with the dismissal of objections and in view of Polgat's financial strength, the court was asked to approve the dividend.
Kereth-Meyer ordered the dismissal of the objections without payment of expenses. She said that in view of the statement itself and of an opinion supporting both the original petition and Polgat's response to the objections, a suitable foundation existed for proving Polgat's and Bagir's soundness after the distribution of the dividend.
Published by Globes [online], Israel business news - www.globes.co.il - on March 28, 2005