A foreign investor is interested in buying the controlling stake in IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Koor Industries Ltd. (NYSE: KOR; TASE: KOR).
In a notice posted today to the Tel Aviv Stock Exchange (TASE), IDB Holding Corp, headed by chairman and CEO Nochi Dankner, reported that in response to a request by a foreign investor, IDB has set up a meeting which will take place over the next few days. The investor wants to discuss buying the controlling stake in Koor.
The same investor has approached IDB in the past, and IDB reported that in a previous meeting IDB decided that there was no basis for opening discussions with that investor, and told them that.
Market sources estimate that IDB has been approached by a Chinese company as well as by two private equity firms. One of the private equity firms reportedly owns a holding in a small agrochemicals firm.
In its TASE notice, IDB emphasized that it has no intention of selling the controlling stake in Koor. However, it added that if an especially attractive offer was made, it would be considered.
The controlling stake in Koor is held by IDB subsidiaries IDB Development Corp. Ltd. (TASE: IDBD) and Discount Investment Corporation (TASE: DISI). Koor owns a 39.54% controlling share in Makhteshim Agan Industries Ltd. (TASE: MAIN).
IDB has been in talks to sell a stake in Koor, but has wanted to keep the controlling share, a demand which has torpedoed talks so far.
Published by Globes [online], Israel business news - www.globes-online.com - on June 24, 2008
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