No negotiations are underway with Israeli banks at this stage.
Sources inform “Globes” that a banking syndicate, led by Citibank (NYSE:C), will probably finance Israel Corp.'s (TASE:ILCO) acquisition of the state's holding in Zim Israel Navigation Co.. No negotiations are underway with Israeli banks at this stage. Israel Corp. bought the state's 48.6% holding in Zim yesterday for NIS 504 million.
Israel Corp. is also negotiating with other foreign banks. Citibank is also involved in the financing of the private power stations Ofer Brothers that is due to build across Israel at a cost of $500 million. Ofer Brothers is the controlling shareholder in Israel Corp.
Israel Corp. today published an offer to purchase the shares of minority shareholders in Zim, who own 2.5% of the company altogether. Under the offer, Israel Corp. will buy the shares at the same $236 million company value that it bought state's shares.
If the minority shareholders do not respond to the offer to purchase, Israel Corp. will apply a legally permissible process to force them to sell it their shares.
Published by Globes [online] - www.globes.co.il - on January 14, 2004