Makhteshim Agan to loan ChemChina $960m for acquisition

Date:07-01-2011

Makhteshim Agan Industries Ltd. (TASE: MAIN), which is owned by IDB Holding Corp. Ltd. (TASE:IDBH) unit Koor Industries Ltd. (TASE:KOR) reported today to the Tel Aviv Stock Exchange that following the merger agreement it signed with ChemChina in January 2011, the detailed loan agreement is close to completion, and most of the relevant documents will be signed in the upcoming days.

Makhteshim Agan said that the company's board of directors has already approved the detailed agreement, and it will be sold as part of a loan agreement worth $960 million, and that in the upcoming days the parties are expected to sign the agreement, accompanying documents and the documents needed to complete the deal.

The loan provision for closing the deal is needed to complete the merger agreement between Makhteshim and ChemChina. The announcement states that the loan will be repaid within seven years from the time the merger is completed. Koor will retain the option, starting from the completion of one year from the loan provision, to impose an early repayment.