Sources inform ''Globes'' that Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY), controlled by chairman Lev Leviev, has entered the race for Oil Refineries Haifa. The company is reportedly considering a bid in the tender, but has not yet decided how to do so, or whether to organize an investor group.
The current leading participants in the tender include Ofer Brothers subsidiary Israel Corp. (TASE: ILCO), Israel Petrochemical Enterprises Ltd. (TASE:PTCH). Foreign investment funds are also expected to bid in conjunction with Israeli companies.
Africa-Israel is seeking a big deal that will reduce its dependence on real estate. Although the company has had phenomenal success in its real estate business and created great value, but it apparently believes that the time has come to diversify its interests.
The privatization of Oil Refineries Haifa is due to take place in early 2007 at an estimated company value of $1.3-1.5 billion, calculated a multiple of the value of Oil Refineries Ashdod.
Oil Refineries Ashdod was sold to Paz Oil Company Ltd. for NIS 3.2 billion. Commenting on the sale today at an Antitrust Authority conference, Delek Group Ltd. (TASE: DLEKG) controlling shareholder Yitzhak Tshuva said, “The price tag for Oil Refineries Ashdod was NIS 1 billion more than reasonable. The price was aggressively set.” He qualified his criticism by noting, “The deal is very good from the perspective of the future.”
Published by Globes [online], Israel business news - www.globes.co.il - on December 4, 2006
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