ICL to provide $27m against royalties dispute

Idan Ofer  photo: Reuters

Israel Chemicals has reached agreement with the state on most of the issues in contention involving Dead Sea Works.

Israel Chemicals (TASE: ICL: NYSE: ICL), controlled by Idan Ofer, will make a provision of $27 million, including interest and index-linkage, in its fourth quarter 2018 financials in connection with the arbitration process over royalties to the state to be paid by group company Dead Sea Works.

At the instruction of the arbitrators, the state and Dead Sea Works conducted talks that ended with agreement on a series of disputes covering most of the issues in contention.

Israel Chemicals notified the Tel Aviv Stock Exchange that a joint statement on the agreements reached had been submitted to the arbitrators, but that no decision had yet been made. Under the agreements, the company will pay royalties owed for the years 2000 to 2017.

The arbitration process that began in 2011 relates to a deep and longstanding dispute over royalties on products produced by the many subsidiaries set up by Dead Sea Works and Israel Chemicals to which activities based on minerals extracted from the Dead Sea were transferred, without payment of royalties stipulated by the concession agreement between the state and the company.

Published by Globes, Israel business news - en.globes.co.il - on December 25, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Idan Ofer  photo: Reuters
Idan Ofer photo: Reuters
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