NEW YORK and TEL AVIV, Israel, May 20, 2012 /PRNewswire/ -- IDB Development Corp. Ltd. (TASE:IDBD) announced today the signing of an agreement to sell 49.9% out of its 60.5% stake in Clal Industries and Investments Ltd (CII) (TASE:CII) to Access Industries, a U.S.-based industrial group, in an all cash transaction which values 100% of CII at $665MM/NIS 2.55bn.
Under the terms of the purchase agreement, IDB will receive NIS 16.19 per share in cash at the closing of the transaction. The purchase price represents a 41.7% premium to the current closing price of the shares and a 15.6% premium based on a three month average closing price for the shares.
CII is one of Israel's leading investment companies and holds a portfolio of investments in various industrial fields, ranging from manufacturing-oriented activities to advanced technology companies. The company also operates units to manage its significant investments in biotechnology and other venture capital investments.
Post-close, it is anticipated that Mr. Avi Fischer, CII's current Co-CEO, will serve as CII's Executive Chairman.
Mr. Nochi Dankner, Chairman of the IDB Group, said, "I congratulate Access and Mr. Len Blavatnik for the CII transaction. I am sure that under his leadership, together with his excellent team and Mr. Avi Fischer, CII will maintain and augment its position as a major business group within the Israeli economy. Mr. Blavatnik has long been a major supporter of charitable activities in Israel. It is significant that in these days of economic uncertainty, Access has also elected to invest commercially in a major way. This step reflects both the robustness and the strong potential of the Israeli market."
Len Blavatnik, Chairman and founder of Access Industries, said, "CII is attractive to Access with strong complementary assets to Access' current portfolio. I look forward to working closely with CII's well-respected and experienced management team."
Mr. Avi Fischer added, "Access Industries' first major acquisition in Israel is a significant event for Israel's economy. The combination of a first tier international group together with CII's strong and long lasting tradition, will take the company to new heights."
The transaction is subject to the satisfaction of customary closing conditions, regulatory approvals and financing. It is anticipated that the transaction will be completed expeditiously.
About IDB Group
The IDB Group is one of the leading business groups in Israel with total assets of about $35bn. The group holds leading corporations in various business sectors including: finance, industry, technology, communication, retail and real estate. IDB's activities spread over 100 countries through about 20 companies listed in Israel, Europe and the US. (www.idb.co.il)
About Access Industries
Access Industries is a privately held industrial group with long-term holdings worldwide. Access was founded in 1986 by its Chairman, Len Blavatnik, an American industrialist. Access' industrial focus spans three key sectors: natural resources and chemicals; telecommunications and media; and real estate. (www.accessindustries.com).
About CLAL Industries
Established in 1956 and listed on Tel Aviv Stock Exchange in 1964, Clal Industries and Investments Ltd. (CII) is one of Israel's leading holding companies, focusing on investments in market leading companies in key industries. CII acts to increase shareholder value over the long term by leveraging its financial and managerial expertise as well as its deep understanding of both the Israeli marketplace and the global arena, for the benefit of its portfolio companies. CII holds a portfolio of investments in various industrial fields, ranging from manufacturing-oriented activities to advanced technology companies. The company also operates units to manage its significant investments in biotechnology and other venture capital investments. The company's shares are traded on the Tel Aviv Stock Exchange under the symbol CII.
Contacts for Access:
Tel Aviv: Eli Kamir, Eden Public Relations, +972 77 2066611
London: Andrew Garfield, Brunswick, + 44 207 404 5959
New York: Stan Neve, Brunswick, + 1 212 333 3810
Contacts for IDB:
Ran Rahav
Ran Rahav Communications and Public Relations ltd.
Tel: 03-7188555
Mobile:052-4231534
Email: ranrahav@ran-rahav.co.il
SOURCE Access Industries
