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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.

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Ellern Investments is supposed to buy control over

Dankner Investment (TASE:



Dor Chemicals (TASE:


) and

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.