Israel Petrochemical Enterprises Ltd. (TASE:PTCH), controlled by David Federman and Yaacov Gotenstein, is set to make a bid for Oil Refineries Haifa. The company announced today that it would raise up to NIS 700 million in a bond issue. Petrochemicals did not state the purpose of the issue, since it has not yet formally announced that it will be making a bid for the refinery.
Petrochemical Enterprises and Israel Corp. (TASE: ILCO) were, until two weeks ago, the leading candidates for the controlling interest in Oil Refineries Haifa, ahead of its flotation. However, as reported in “Globes,” Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) controlling shareholder Lev Leviev is also considering bidding for the refinery. The privatization of Oil Refineries Haifa is due to take place at the beginning of 2007, at estimated value of $1.3-1.5 billion, based on the multiple for Oil Refineries Ashdod.
Oil Refineries Haifa is the ideal match for Petrochemical Enterprises. Aside from their physical proximity, both companies share a holding in Carmel Olefins Ltd. , thus should Petrochemical Enterprises win control of Oil Refineries Haifa, it will become the sole owner. At the same time, Oil Refineries Haifa itself owns 12.5% of Petrochemical Enterprises.
Published by Globes [online], Israel business news - www.globes.co.il - on December 17, 2006
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