The company paid $22 million for Koa Gas and will invest $50 million in upgrading and expanding the company’s facilities.
Packer Steels and Metals Ltd. (Packer Plada) (TASE: PKER), controlled by Lev Leviev has acquired Russian building and infrastructure supplies producer Koa Gas for $22 million. Koa Gas’ plant is located in Kraskovo, on Moscow’s Third Ring Road. $11.5 million was paid when the contract was signed yesterday, and the rest will paid by the end of July.
Koa Gas owns a 65-acre site, which includes buildings, railway lines, a power plant, and other utilities for its own use. Packer Plada will invest $50 million in upgrading the site and build a steel and galvanizing plant on it.
Leviev acquired Packer Plada through Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK) a year ago at a company value of NIS 320 million. Packer Plada’s value has since risen 37% to NIS 439 million.
Published by Globes [online], Israel business news - www.globes.co.il - on July 3, 2007
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