The board of Ellern Investments approved yesterday the acquisition of a 60% majority stake in each of Israel Salt Industries, Dankner Investments and Dor Chemicals, all of which are currently controled by the Dankner family.

The deal should amount to $215 million, say sources close to the transaction.

To help finance the deal, two banks - apparently including Bank Leumi - will lend Ellern $115 million.

Ellern will put up $70 million of its own capital following a rights issue. The remainder will come from other sources of finance to be spread over the next three years.

The multimillion dollar deal that will catapult Ellern into real estate, industry and telecoms holdings is very much a family affair. Ellern is controled by the families of Shmuel and Avraham Dankner and is managed by their sons, Dori and Gadi Dankner.

Upon completion of the deal, the shareholders will be joined by the Gineo family, related by marriage to the Dankners, as well as being partners in Israel Salt Industries, Dor Chemicals and Dankner Investments.