Arie Razel Development and Management is reportedly negotiating to sell the controlling interest in Sadot Venture Capital Management, the management company of
. Sadot is listed on the London and Tel Aviv stock exchanges.
Today Sadot stock climbed 11.6% on the Tel Aviv Stock Exchange, on unusually high turnover of NIS 300,000. No trade was registered on the LSE.
Arie Razel Investments and Management is controlled by Sadot chairman, Jack Elaad; Israel Ben-Zion, and a holding company that owns 5.3% of Sadot R&D fund.
Elaad declined to comment on the story.
Sadot Venture Capital Management, controlled by Arie Razel Development and Management, received management fees of 3.5% a year.
Sadot R&D Fund ended 2001 with NIS 133 million cash in hand and in bank deposits, and another NIS 13.5 million invested in negotiable securities. During 2001 the fund $37 million in a number of companies. Its shareholders equity at year-end 2001 was about NIS 203 million. The fund's loss for 2001 came to I 18.7 million, and its management fees for that year totaled NIS 9 million.
In 1999 Arie Razel Investments and Management signed an agreement with Green Venture Capital, under which Green acquired about a million shares in the fund for NIS 6 million. Green today holds about 15% of Sadot R&D Fund's shareholders equity. The agreement encompasses cooperating on votes at shareholders assemblies and on board appointments.