Sources inform ''Globes'' that Fishman Holdings subsidiary Ten Petroleum Co. Ltd. is in advanced negotiations to buy dozens of gas stations in Russia. If a deal is closed, it will be the first time that an Israeli fuel company has entered the Russian market.
Energy market sources said that Ten Petroleum has already carried out a thorough study of the Russian energy market. Fishman Holdings already has extensive interests in the Russian real estate market, through Mirland Development Corporation plc (AIM:MLD), held through Jerusalem Economic Corp. (TASE:ECJM) (JEC) and Industrial Buildings Corp. (TASE: IBLD). The gas stations are intended to create synergy with the real estate activity.
Ten Petroleum is Israel’s fifth largest fuel company, after Paz Oil Company Ltd. (TASE:PZOL), Delek Group Ltd. (TASE: DLEKG) subsidiary Delek Petroleum Ltd., Sonol Israel Ltd,, and Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL). Last year, Fishman Holdings owner Eliezer Fishman tried to sell Ten Petroleum at a value of $70 million, and Tao Tsuot Ltd. (TASE: TAO-M) and Excellence Investments Ltd. (TASE: EXCE) ultimately jointly acquired 25% of the company at a value of $60 million.
Ten Petroleum has 30 gas stations in Israel, and is considered profitable. Energy market sources believe that the company could become an acquisition target by Oil Refineries Ltd. (TASE:ORL), which was recently acquired by Israel Corp. (TASE: ILCO) and Israel Petrochemical Enterprises Ltd. (TASE:PTCH). Sources believe that Fishman and his new partners in Ten Petroleum will try to add value to the company, in part through acquisitions overseas.
A Fishman Holdings’ spokesman said negotiations were taking place, but declined to provide further details. Eliezer Fishman is the controlling shareholder in “Globes”.
Published by Globes [online], Israel business news - www.globes.co.il - on April 1, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007