Ampal announces agreement to sell its Equity interest in Pri Ha'emek.NEW YORK--(BUSINESS WIRE)--Oct. 11, 1996--Ampal-American Israel Corporation (AMEX AMEX See: American Stock Exchange :AIS.A) announced today that it has agreed to sell the equity interest of the Ampal Group in its food processing Food processing is the set of methods and techniques used to transform raw ingredients into food for consumption by humans or animals. The food processing industry utilises these processes. subsidiary, Pri Ha'emek (Canned and Frozen Food) 88 Ltd., to Agrifarm International Limited, a British company. The Ampal Group will pay Agrifarm approximately $2.1 million which Agrifarm has agreed to provide to Pri Ha'emek and which will relieve the Ampal Group of guarantees on behalf of Pri Ha'emek amounting to approximately $1.5 million. In addition, Ampal has agreed that it will assign to Agrifarm approximately $900,000 owed to the Ampal Group by Pri Ha'emek (including a new loan to Pri Ha'emek of approximately $600,000) and will forgive approximately $2.5 million owed to the Ampal Group by Pri Ha'emek. Under the terms of the agreement, the Ampal Group will receive an option to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. between 5.8% and 8.3% of Pri Ha'emek's shares from Agrifarm for one and one-half years at a price of one-half New Israel New Israel is a religion that separated itself from a religions sect Old Israel which is type of Christianity in the beginning of the 20th century. It differs from mainstream Christianity in a number of ways. Shekel per share. The number of shares covered by this option is dependent upon the number of shares of Pri Ha'emek purchased by Agrifarm from another shareholder of Pri Ha'emek. Ampal will record this transaction in the third quarter of 1996 but does not expect that it will have a negative effect on its results of operations and financial position, due to the recognition of tax benefits. The agreement is subject to receipt of regulatory approvals in Israel, approvals of the Boards of Directors of the parties and a right of first refusal Right of First Refusal In general, the right of a person or company to purchase something before the offering is made available to others. Notes: For example, a football team may have the right of first refusal on a player's contract. in favor of another shareholder of Pri Ha'emek to complete the transaction on the same terms as Agrifarm. Ampal and its subsidiaries acquire interests in businesses located in the State of Israel or that are Israel-related. An important objective of Ampal is to make investments in companies which take advantage of growth in Israel's domestic economy. Ampal and its subsidiaries have diversified diversified (di·verˑ·s interests in the following sectors: hotels and leisure-time, real estate, finance, energy distribution, basic industry, high technology and communications, as well as others. CONTACT: Ampal American Isarael Corp., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Lawrence Lefkowitz, 212/782-2100 |
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