Jerusalem (Platts)--30Aug2012/846 am EDT/1246 GMT
The board of directors of Israel Petrochemical Enterprises Ltd has approved the sale of a 45% stake in its Avgol Ltd subsidiary to London-based private equity company Ethemba for $106.8 million, the company said late Wednesday. An additional $16 million payment has been agreed to by the parties dependent on 2013 results. Following the sale IPE will control 21% and the remainder is traded on the Tel Aviv Stock Exchange. Avgol is a leading global producer of non woven fabrics for the hygiene industry with manufacturing facilities in Israel, China, Europe and the US. The company is investing $71 million in new production lines in the US and China and has plans to expand into India. Article continues below... Platts 6th Annual European Refining Markets Conference: Maintaining Europe's Downstream Industry 24-25 September 2012, Marriott Brussels, Brussels, Belgium Attracting 150+ industry professionals, the conference provides attendees with a practical insight into the global refining environment, product and price shifts and legislative developments while unearthing strategies for increased refinery responsiveness, risk mitigation and investment procurement.
The board of directors of Israel Petrochemical Enterprises Ltd has approved the sale of a 45% stake in its Avgol Ltd subsidiary to London-based private equity company Ethemba for $106.8 million, the company said late Wednesday. An additional $16 million payment has been agreed to by the parties dependent on 2013 results. Following the sale IPE will control 21% and the remainder is traded on the Tel Aviv Stock Exchange. Avgol is a leading global producer of non woven fabrics for the hygiene industry with manufacturing facilities in Israel, China, Europe and the US. The company is investing $71 million in new production lines in the US and China and has plans to expand into India.
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Attracting 150+ industry professionals, the conference provides attendees with a practical insight into the global refining environment, product and price shifts and legislative developments while unearthing strategies for increased refinery responsiveness, risk mitigation and investment procurement.
IPE, which owns a minority stake in Oil Refineries Ltd, decided on the sale in order to ease its $500 million debt burden to bondholders and local banks. Avgol also reported its second quarter results on Wednesday, posting a 74% drop in net profit to $1.3 million from $5 million in the same quarter a year ago. Revenues rose to $80.2 million from $68 million in the second quarter of 2011.--Neal Sandler, newsdesk@platts.com--Edited by Jeremy Lovell, jeremy_lovell@platts.com
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