Makhteshim Agan Industries Ltd. : ChemChina Transaction – Update
TEL AVIV, Israel, June 28, 2011 /PRNewswire/ –
Attn. Israel Securities Authority By Magna Attn. The Tel-Aviv Stock Exchange Ltd. By Magna Dear Sir or Madam,
Pursuant to the Immediate Reports dated January 16, 2011 (ref. no.
018612-01-2011), May 16, 2011 (ref. no. 149553-01-2011), May 24, 2011 (ref.
no. 159246-01-2011), June 5, 2011 (ref. no. 175536-01-2011), June 6, 2011
(ref. no. 177474-01-2011), June 13 (ref. no. 182019-01-2011), June 21 (ref.
no. 188973-01-2011), and June 23 (ref. no.192240-01-2011), in respect of the
merger agreement dated January 8, 2011 between the China National
Agrochemical Corporation (“ChemChina”), Koor Industries Ltd (“Koor”) and the
Company (“the Merger Agreement”), the Company announces that Koor has
informed the Company as follows:
On June 27, 2011 the board of directors of Koor approved Koor entering
into the loan agreement (“Loan Agreement”) with ChemChina and with the
Export and Import Bank of China (“the Chinese Bank”), whereby as part of the
completion of the Merger Agreement a loan of USD 960 million (“the Loan
Principal”) would be made available to Koor by ChemChina through the Chinese
Bank. Similarly, the board of directors of Koor approved the wording of the
letter of credit up to the amount of the Loan Principal, which would serve
as collateral for provision of the loan and that will be issued to Koor at
the date of signing the Loan Agreement (“Koor LC”) by the Chinese Bank with
the support of an international bank (the Loan Agreement and the Koor LC
jointly are “the Financing Documents”).
Koor has informed the Company that it expects the parties to sign very
soon the Loan Agreement, the accompanying documents and several additional
documents required for completion of the transaction, at which time the Koor
LC will also be issued.
Upon the expected signature very shortly of the Financing Documents and
the associated documentation required for completion of the transaction, it
is expected that shortly thereafter a general meeting of the Company will be
convened to approve the transaction.
Makhteshim Agan Industries Ltd
Adv. Michal Arlosoroff, Legal Counsel & Company Secretary
Contact: Rony Patishi-Chillim, IR@ma-industries.com , +972-72-2321119
SOURCE Makhteshim Agan Industries Ltd