In a notice to the Tel Aviv Stock Exchange (TASE) this morning, Israel Corporation (TASE: ILCO) announced that it is considering selling up to 7% of Israel Chemicals Ltd. (TASE: ICL) as part of its planned offering on the New York Stock Exchange, announced last year. Israel Corp., controlled by Idan Ofer, is considering securing financing through a derivative financial deal to lend the Israel Chemicals shares to a financial institution, which will sell or distribute them. Alternatively, Israel Corp. will sell the shares in Israel Chemicals, or it might carry out a combination of the two options.
Israel Corp. said, "The purpose of the deal is to increase the flexibility of the company's capital structure, create infrastructure, and reduce the company's net debt." It added, "The company considers the investment in Israel Chemicals as a strategic investment."
Israel Corp. said that if a deal is contracted, it would be completed during 2014. It added the caveat, "The board of directors has not yet decided on a deal, its structure, or the number of Israel Chemicals involved, and there is no assurance that the deal will be completed, or when."
Published by Globes [online], Israel business news - www.globes-online.com - on March 19, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014