The reorganization of control over the IDB Holding Corporation has advanced another step.
IDB subsidiary Discount Investment Corporation approved the sale of a 37.3% stake in IDB Holding Corporation by its affiliated company El Yam Ships (24%) to Leon Recanati, the Kardan investment group and the Carasso family.
Under an agreement signed in August, Recanati plus Kardan plus the Carassos are supposed to achieve a 51% joint holding in IDB Holding Corporation, in two stages.
The first stage was for Kardan to achieve a 23% interest in IDB Holding Corporation, Recanati to achieve an 18% holding and the Carassos to achieve a 10% stake.
The second stage, to be implemented through options, should bring Kardan a total interest of 21% to 29%; Recanati a 10% to 18% interest, and the Carassos 10%. Bank Hapoalim, which is financing much of the deal, is to end up with an 8% holding in IDB Holding Corporation.
Other steps the group has taken to restructure include merging Clal Industries with Clal Electronics, and to sell the real estate company Azorim and the building materials company Ytong. It is also working on merging Elbit (Nasdaq:ELBT) with Elron Electronic Industries (Nasdaq:ELRNF).