On Thursday the
Gmul Investment Company (TASE:
) announced negotiations with
FIBI Holdings (TASE:
) to buy the holdings of its subsidiary, FIBI Investments, in
Ellern Investments (TASE:
), for $8 million.
It now transpires that FIBI will itself be financing the deal.
FIBI is slated to lend Gmul the entire sum for a five year period, at prevailing market terms. Forty-five percent of the sum will be a nonrecourse loan.
Ellern Investments is supposed to buy control over
Dankner Investment (TASE:
Dor Chemicals (TASE:
Israel Salt Industries (TASE:
FIBI and Gmul also agreed that if those deals are not finalized, the entire loan will turn into a nonrecourse vehicle, and FIBI may exercise an option to repurchase the Ellern shares for the same $8 million, plus a sum for interest on the loan until such time.
Until the loan is repaid, FIBI will have rights to the Ellern shares.