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IDB Chairman Nochi Dankner to retain control of company Photo: Amit Shaal
IDB Chairman Nochi Dankner to retain control of company Photo: Amit Shaal
 
 

IDB reaches settlement with bondholders

One of Israel's leading conglomerates, which has debt of NIS 2.06 billion, says controlling shareholders will inject NIS 500 million into company

Reuters
Published: 03.13.13, 07:14 / Israel Business

IDB Holding Corp, one of Israel's leading conglomerates, has agreed on a settlement in principle with representative of its bondholders.

 

IDB, which has debt of NIS 2.06 billion ($560 million), said on Tuesday controlling shareholders would inject NIS 500 million ($135.65 million) into the company, of which NIS 275 million ($74.6 million) will be paid immediately and the rest in five annual installments of NIS 45 million ($12.2 million).

 

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Bondholders will receive a cash payment of NIS 405 million ($109.9 million) and 15% of IDB shares, with a current value of about NIS 80 million ($21.7 million). IDB Chairman Nochi Dankner will retain control of the company.

 

Bondholders will also receive four new bond series, totaling nearly NIS 1.6 billion ($430 million).

 

The settlement and the capital injection depend on a deal with Argentinian businessman Eduardo Elsztain, who last month bought a 10% stake in Ganden Investments, the parent company of IDB.

 

In September, Elsztain signed an agreement to invest $25 million in Ganden for 10% and received an option to invest another $75 million to raise his holdings to about 31%. Ganden is the private company through which Dankner controls IDB.

 

The IDB group, which has assets of $30 billion, controls Cellcom, Israel's leading mobile phone operator, supermarket chain Shufersal and Clal Insurance. Its subsidiary Koor Industries owns a 2.4% stake in Credit Suisse.

 

Elsztain is chairman and chief executive of IRSA, Argentina's biggest real estate company. He also serves as chairman of Cresud , a major agriculture producer.

 

 

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