IDB in talks to sell 36% of Clal Industries
Livnat family poised to acquire stock from IDB Holding at a NIS 3.8 billion value, making it the company's controlling shareholder
Once the deal is signed, IDB will remain with a minority interest in Clal Industries. IDB's stake in Clal Industries is valued at some NIS 2.3 billion ($610 million).
Once completed, the deal will yield steep capital gains for the IDB Group as the value of the investment in IDB's books is NIS 1.3 billion ($340 million), whereas Clal Industries is traded on a NIS 2.6 billion ($690 million) market cap.
IDB Holding is expected to post a capital gain of about NIS 1 billion ($260 million) from the deal, which reflects the difference between the value of its holdings in Clal Industries based on the deal's value, and Clal Industries' value in IDB's books, stemming from the fact that IDB relinquished control over Clal Industries.
IDB Development, a fully owned subsidiary of IDB Holding, controls some 60.5% of the company at a NIS 1.59 billion ($420 million) value. Currently, Avi Fischer and Zvi Livnat are joint CEOs of Clal Industries.
Clal Industries holds Nesher Cement Industries, which is the group's main cash artery, as well as Clal Biotechnology. Clal Industries controls Hadera Paper Mills and the Golf Group fashion retail chain, and has holdings in Maman Logistic Services, Bet Shemesh Engines and Jafora-Tabori – Israel's second largest soft drink producer.
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