David Federman in talks to sell Avgol stake
Sources: Federman’s Petrochemical Enterprises is negotiating the sale of its holding in Avgol Nonwoven Industries to Ethemba Capital.
24 July 12 09:41, Globes’ correspondent
It is no secret that Israel Petrochemical Enterprises Ltd. (TASE:PTCH) controlling shareholder David Federman’s need for cash has pushed him to try and sell Avgol Nonwoven Industries Ltd. (TASE:AVGL), controlled by Petrochemical Enterprises. “Globes” first reported talks for the sale of the company two months ago.In a notice to the TASE today, Petrochemical Enterprises said that, following approaches that it had received from various parties, it was in talks with a foreign private equity fund to sell most of its holding in Avgol. Sources close to the talks believe the potential buyer is Ethemba Capital Ltd. of the UK.
In the notice, Petrochemical Enterprises added the caveat that there was no certainty at this stage whether the negotiations would result in a binding deal. If no deal is reached with the private equity fund, Petrochemical Enterprises many hold talks with other parties for the sale of the controlling interest in Avgol.
Petrochemical Enterprises owns 24% of Avgol. Avgol’s share price rose 4.2% in early trading today to NIS 2.96, giving a market cap of NIS 846 million.
Published by Globes [online], Israel business news – www.globes-online.com – on July 24, 2012