Ellern reveals premiums to be paid for Dankner companies

Ellern Investments today revealed its evaluation of three companies it means to acquire: Israel Salt Industries (TASE:SALT), Dankner Investments (TASE:DKNR) and Dor Chemicals (TASE:DORC).

All four companies belong to members of the Dankner family. Ellern is controlled by Shmuel and Avraham Dankner.

Ellern's board yesterday approved the acquisition of a 60% majority stake in each of the three companies.

Ellern assesses Salt Industries, which holds 11.6% of Bank Hapoalim, at $190 million.

Dankner Investments, which controls Matav Cable Systems (Nasdaq:MATV), was assessed at $90 million, and Dor Chemicals received a price tag of $65 million.

The deal will be carried out through a subsidiary, Ellern Holdings.

Ellern Holdings will be buying 25.7 million shares in Salt Industries, comprising 64.6% of its equity, for $122.7 million, from five different Dankner households. That price is about 13% above Salt Industries's current market value. Ellern Holdings is expected to borrow some of the money for that deal, assuming its auditors' board approves the move.

Ellern Investments will be paying four Dankner households $54.8 million for 13 million Dankner Investments shares, comprising 60.9% of the company's share capital. The price is a premium of 29% above the market.

As for Dor, five Dankner families will be sharing $36.8 million for 16.1 million shares, comprising 56.7% of the company's equity. That deal is 23% above the market. The price Ellern pays for Dor may be higher, subject to certain conditions, the company pointed out.

None of the agreements with the Dankners have been signed yet, Ellern added. The deals are also contingent on antitrust and regulatory approval.

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