Azrieli Group Ltd. (TASE: AZRG) notified the Tel Aviv Stock Exchange this morning that it had received the Antitrust Commissioner Micha Halperin's approval for the sale of filling station company Sonol to David Wiessman. The parties are working towards completion of the deal.
Sonol had been on the shelf for more than three years, and the negotiations between Azrieli and Wiessman took about six months. The deal will be carried out through Israel Oil & Gas Fund LP, the general partner in which is controlled by Wiessman.
The total consideration in the deal will be NIS 364 million, but only NIS 188 million of this will be paid from Wiessman's pocket at the time the deal is completed. The remainder will be paid as follows: NIS 98 million through a seller's loan that Azrieli will grant Wiessman, secured through a lien on the shares in Sonol and bearing annual interest of prime plus 1% paid quarterly; NIS 21 million to be paid within eighteen months of completion; and NIS 5 million to be paid against "the repayment of certain loans by Sonol debtors".
Commenting on the deal, Wiessman said in April, "Sonol is one of the oldest and best energy companies in the Israeli economy and represents as unique business opportunity."
Azrieli holds Sonol through Granite Hacarmel, through which it also holds Supergaz. Granite Hacarmel was delisted from the stock exchange in October 2012, and since then Azrieli Group has been working on selling its holdings, since they are not part of the group's core business of income producing real estate.
In 2014, Azrieli signed an agreement to sell Sonol to leasing group S. Shlomo Holdings Ltd. (TASE:SHLD) for NIS 450 million, but the deal was cancelled before it was completed following the sudden death of the controlling shareholder in Shlomo, Shlomo Shmeltzer.
Published by Globes [online], Israel business news - www.globes-online.com - on June 19, 2016
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