ISRAEL : Koor Industries offered NIS 500m owners loan from IDB.
Koor said that The loans being bridge loans, will be repaid after its receival of the loan as part of the accomplishment of it subsidiary Makhteshim Agan Industries Ltd. sale to China National Chemical Corporation (ChemChina), or March 31, 2012, whichever comes first, Koor said.
At present, Koor's recorded loss on its Credit Suisse holding stood at NIS 2 billion, after the bank's share price saw a two-year low on the both Zurich as well as New York Stock Exchanges. Koor had purchased those shares by spending an amount of NIS 6.97 billion between March 2008 and March 2010, but which are currently valued at NIS 4.7 billion in the market. Earlier, Koor earned NIS 3.6 billion in capital gains, on its Credit Suisse's holding, including dividends. As per Koor's loan agreements with the Citigroup Inc. and Morgan Stanley, which provided it with the needed money to buy those shares, Koor may opt for selling the shares to raise its guarantees.
However, the sources said that Koor is unlikly to sell Credit Suisse shares at such a lower rate in the near future, rather wait for the recovery of the share price. Koor has now NIS 1.2 billion in debts, and have a loan both from Citigroup and Morgan Stanley to the tune of NIS 2.8 billion.
Koor's share price dropped 11.1% by midday to NIS 45.46, offering a market capital of NIS 2 billion while Discount Investment's share price plunged 14.9% to NIS 35.20, providing a market capital of NIS 3 billion.
2011 Al Bawaba (Albawaba.com)
Provided by Syndigate.info an Albawaba.com company
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|Date:||Aug 9, 2011|
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