Nochi Dankner in talks to buy IDB with Yitzhak Manor

Nochi Dankner and Yitzhak Manor, through real estate company Ganden, are in advanced negotiations to acquire 52% of IDB Holdings at a company value of $1.05 billion according to sources close to the talks. All the partners in the IDB controlling stake will sell shares to Ganden, including Oudi Recanati, Leon Recanati, the rest of the Recanatis and the Carasso family. In contrast to the previous deal for the sale of IDB, Leon Recanati is amonghte sellers and will not retain any control of IDB.

According to the principles of the deal, Ganden will purchase about two-thirds of the share bloc and Yitzhak Manor, one of automobile importer David Lubinksi¿s heirs, will buy the rest while the entry of other partners into the deal will be considered until its execution. Ganden will eventually control the group and Nochi Dankner is expected to be appointed chairman of the board. Capital market sources estimate the transaction could be made through real estate company Azorim, which Ganden recently purchased from IDB.

Sources close to the talks stated that Ganden needs $180 million in shareholders equity to close the deal while the rest of the money will come from loans from local banks. Ganden Holdings portion of the equity will be about $120 million, while Yitzhak Manor, who holds 50% of Lubinsky auto importers, will provide $160 million.

The price for the deal reflects IDB¿s loss of altitude on the capital market in the past year, since the inception of talks to sell control of the concern to Kardan at $1.3 billion.

If the deal closes, Nochi Dankner will be forced to sell his holdings in Bank Hapoalim and resign his senior positins at the bank, including chairmanship of the bank¿s credit committee, as te bank is IDB¿s primary creditor. Dankner informed the Supervisor of Banks of his plans last week.