Israel Corp. and Scailex now own 50.25% of Oil Refineries after buying shares for NIS 254 million.
The Ofer-Federman partnership is tightening its control in Oil Refineries Ltd. (TASE:ORL). Ofer Brothers subsidiary Israel Corp. (TASE: ILCO) and Scailex Corp. ltd. (TASE: SCIX; SCIXF.OB) subsidiary Capital Petroleum Holdings Ltd. jointly bought 85 million Oil Refineries shares at NIS 2.985 per share for a total of NIS 254 million. The price paid was 10% less than the share price at which the two companies acquired control of Oil Refineries in last week’s IPO. The new owners now own 50.25% of Oil Refineries.
Israel Corp bought 55% of the shares in the latest deal for NIS 140 million, and Petroleum Capital bought the other 45%. The proportions of the purchase indicate that Scailex, controlled by Israel Petrochemical Enterprises Ltd. (TASE:PTCH), will probably soon exercise an option to increase its stake in the Ofer-Federman joint venture to 45%. Israel Corp. currently owns 80% of the joint venture and Scailex owns 20%, but has an option to buy 25% of Oil Refineries from Israel Corp. at the IPO price. The option will reportedly be exercised sometime in the coming months.
Published by Globes [online], Israel business news - www.globes.co.il - on February 27, 2007
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