Delek Auto to buy Kamor Motors

Company corroborates Calcalist exposure, to acquire full control of importer of BMW and Mini Cooper at value of approximately NIS 245 million – 55% above Kamor Motors' market cap

Golan Hazani, Calcalist|Published: 07.10.11 , 14:25

Delek Auto on Sunday corroborated Calcalist's exposure that the company is negotiating with the holders of Kamor Motor's controlling interest to acquire full control of the company at a value of some NIS 245 million ($72 million), a value 55% higher than Kamor Motors' market cap.

According to Delek Auto, the deal is pending completion of the tender offer for all of Kamor Motors' shares, according to which the company will acquire all of Kamor Motors remaining holdings based on the same company value, approval of the company's suppliers and approval of the Antitrust Authority, among others.

Kamor Motors reported a projected profit of NIS 150 million ($44 million) as a result of the deal.

According to the Calcalist report, Delek Auto – controlled by Gil Agmon – is to acquire full control of Kamor Motors, the importer of BMW and Mini Cooper, from publicly traded Kamor Ltd. which is controlled by Danny Brenner.

Delek will acquire the 64% stake in Kamor Motors from Brenner, who is thus relinquishing the brand name most identified with his own.

Delek Auto is the local importer of Mazda and Ford. Last October, Agmon took over Delek Auto by acquiring 22% of affiliate company Delek Group Ltd. from the holder of the company's controlling interest, Yitzhak Tshuva, for NIS 1 billion ($290 million). Consequently, Tshuva now holds a 38% stake of Delek Auto shares.