Levinstein's purchase of Teva's Jerusalem plant in doubt

Teva Photo: Reuters Ammar Awad

Completion of the NIS 117 million deal has been postponed with Levinstein claiming that the land of the former pharmaceutical manufacturing plant is polluted.

Levinstein Properties Ltd. (TASE: LVPR) is seeking to change the terms and perhaps even cancel the deal signed with Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) in March 2019 to buy its tablets plant in Jerusalem's Har Hotzvim for NIS 117 million, sources inform "Globes."

Levinstein claims that pollution on the land makes the project it had planned impossible to develop. The deal was meant to close at the end of June but was postponed until the end of the third quarter as the two sides continue talks.

Sources close to Teva claimed today that after the plant was closed questions arose about whether the site was polluted as the Israeli pharmaceutical company had been manufacturing drugs there for many years. But after investigations on the matter were completed by the Ministry for Environmental Protection, Teva was handed confirmation that there was no pollution.

When asked to comment on the matter, Levinstein Properties said, "The property is yet to be handed to the Group, so Teva must be contacted."

The Jerusalem tablets factory was shut down as part of the Teva streamlining program presented by CEO Kare Schultz at the end of 2017.

The Jerusalem plant is on 31,000 square meters of land with 34,000 square meters of buildings and rights to build another 70,000 square meters. According to the terms of the deal Levinstein Properties is buying 60% and its parent company Levinstein Engineering 40%. The buyers plan to lease out the existing buildings for various uses typical of the area and realize its construction rights. According to Levinstein Engineering's financial report, the company has paid Teva a 10% deposit of NIS 17,000 and purchase tax amounting to NIS 25.2 million.

Published by Globes, Israel business news - en.globes.co.il - on July 13, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Teva Photo: Reuters Ammar Awad
Teva Photo: Reuters Ammar Awad
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