Keter Plastic Ltd., owned by chairman Sami Sagol, has bought 223,000 shares of Israel Petrochemical Enterprises Ltd. (TASE:PTCH) for NIS 9.42 million from Modgal Ltd. Keter Plastic now owns 6.85% of Petrochemical Enterprises.
The purchase was mandated under a 1999 contract between Keter Plastic and Modgal, when Keter bought 6.1% of Petrochemical Enterprises. A clause in the contract included a reciprocal undertaking stipulated that if one party increased its stake in Petrochemical Enterprises by buying shares from a third party, the second party reserved the right to participate in the deal on a proportional basis.
Modgal recently bought Petrochemical Enterprises shares, increasing its stake in the company to 62%. Sagol exercised Keter Plastic’s option and bought a proportional amount of the deal from the seller.
There have been reports lately that some Petrochemical Enterprises’ shareholders asked Sagol to sell Keter Plastic’s shares in the company to them, after acquired control of Oil Refineries Ltd. (TASE:ORL). Sagol rejected the requests; instead he increased his own stake in the company.
Published by Globes [online], Israel business news - www.globes.co.il - on March 15, 2007
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