The Dankner family, which controls
Dor Chemicals (TASE:DORC), is bringing in Polar Investments as a partner in the polypropylene sheeting maker.
Polar belongs to the Shrem, Fudim, Kelner group (TASE:SFK). This morning Polar announced that its board approved a $7.5 million investment in 12% of Dor's share capital.
The price values Dor at $62.5 million, a premium of 27% above its market value.
The purchase brings Polar the right to appoint a director to Dor's board.
The Dankners also granted Polar a one-year option from the signature date to buy another 7.5% of Dor for $5 million, pricing Dor at $67.5 million.
If Polar exercises its option, it will become the biggest single shareholder in Dor.
A Polar spokesman told TheMarker that the acquisition complies with company policy to invest in multinationals, and companies operating outside Israel.
Dor is indeed expanding its sway abroad. In mid-May 2002 Dor's Italian subsidiary Moplefan, itself acquired in December 2001, signed a memorandum of understanding to buy Shorko Australia for $25 million. Shorko also makes polypropylene sheeting. Insofar as is known, the deal has yet to be finalized.