Exclusive to Calcalist – November 11, 2019
The price Rose to 47.5 Million NIS at the Closing
The VicePresident of Intel International joins Elco and acquires 1% of Supergas
The Salkind family is joiningSagi Ben Moshe in a transaction that was completed yesterday. The former Vice Presidentof Mobileye - prior to its acquisition by the computer giant - will purchase thestake in the company via which Elco acquires the Supergas shares from Azrielifor NIS 8.2 million
By Golan Hazani
The Salkind family is joining anadditional partner in the transaction completed yesterday. Calcalist wasinformed that Sagi Ben Moshe, who was appointed last February as Vice Presidentat Intel, bought 1% of the shares Green Energy Ltd., through which Elco of theMikey and Danny Salkind brothers acquired the entire shares of Supergas sharesfrom Azrieli.
In a report issued yesterday,Elco stated that it had entered into a capital raising agreement with an investorthat is unrelated to the company, and for an insignificant volume, in considerationof 1% of the shares, but did not mention his name. Ben Moshe came to Intelfollowing the $ 15.3 billion acquisition of Mobileye in 2017, where he servedas Vice President. In addition, Ben Moshe co-founded Invision, a software and appdesign company, and DGScreen, a software and technology company.
Elco's report indicates that thedeal, led by Danny Salkind, was completed in a slightly different outline thanthe original one signed last July. According to the current outline, Green Energywill buy 100% of Granite Hacarmel, whose sole holding is Supergas, for NIS817.5 million and not for NIS 770 million. Yesterday, Elco transferred NIS567.5 million to Azrieli, which is added to the NIS 20 million deposited at thedate of signature. The balance - NIS 250 million - will be transferred in sevenequal annual payments.
In fact, a large part of thepurchase price will be imposed on Supergas itself, which will take out credit inthe amount of NIS 320 million from two Israeli banks, which will grant the sum inequal parts, at an interest rate of 1% - 2% above prime, for a period of 6-10years. As guarantee, Elco will provide all the Supergas shares as well as anadditional NIS 90 million.
As revealed by Calcalist lastmonth, Elco joined Leumi Partners, the real investment branch of Bank Leumi, aswell as the Phoenix, the insurance company, to the deal. Each granted a loan toElco in the amount of NIS 45.4 million, in consideration for the option to buy10% of Green Energy, which owns Supergas, at the price at which it acquired thecompany. The loan is for a ten-year period and at an interest rate of 0.5% perannum.
The attorneys who advised Elco inthe transaction are Sharon Amir, Meital Lederman, Noam Shuali and Merav Danorof the Naschitz Brandes Amir firm. The Azrieli Group was represented by Advs. MickeyBarnea and Ilan Blumenfeld of Barnea Jaffa Lande & Co., as well as by CPANitai Tal.
As a result of the transaction,Azrieli will make a profit of NIS 380 million.