Makhteshim sale deadline to ChemChina extended

Yossi NissanKoor Industries Ltd. controlled by Nochi Dankner's IDB Holding Corp. Ltd. group, announced to the stock exchange that it is postponing the closing of the deal to sell Makhteshim Agan Industries Ltd. to ChemChina. The announcement said that the parties agreed to extend the last deadline for completing the transaction until September 30, 2011.

Just three days ago, Koor announced that the deadline for signing the agreement is September 8, after calling for a Makhteshim Agan shareholders meeting to give final approval to the deal. Koor announced that Koor and ChemChina have completed the drafting of the detailed loan agreement and that the parties are close to completing the accompanying documentation. The Company expects that, subject to approval of Koor’s board of directors, the documents will be signed during the next few days.

In the Makhteshim/ChemChina deal signed in January 2011, ChemChina will acquire the public's holdings in Makhteshim Agan, and 7% of Koor's shares in the company, and consequently Makhteshim Agan will become a private company, 60% owned by the Chinese company and 40% by Koor.

As part of the deal, Makhteshim Agan shareholders will receive $1.27 billion for 53% of the company's shares, and Koor will receive about $168 million for 7% of its shares in Makhteshim Agan. As a result of this deal, Koor is expected to record a capital gain of about NIS 148 million, and an increase in equity of about NIS 49 million.