By letter dated January 8, 2014, the Company reported that relating to the information previously filed and in connection with the Company’s investment in Dolphin Fund Ltd, an investment fund incorporated under the laws of the Island of Bermuda, whose Investment Manager is Consultores Venture Capital Uruguay S.A., a company indirectly controlled by Eduardo Sergio Elsztain (“Dolphin”).
In this regard, we inform that the competent court in the debt restructuring of the Israeli holding IDB Holding Corporation Ltd (“IDBH”) has approved the offer made by Dolphin together with E.T.H.M.B.M Extra Holdings Limited, a company incorporated under the laws of the State of Israel, and controlled by Mordechay Ben Moshé (“ETH”), in order to acquire 53.3% of IDB Development Corporation Ltd. (“IDBD”), (“the Offer”); the aforementioned percentage might be increased, subject to the sale of certain assets in possession of IDBD during this year.
In the Offer Dolphin, together with other investors, holds a 50% stake while ETH holds the remaining 50%. The total investment amounts approximately to USD 272 million (NIS 950 million); in that sense the Company has invested an approximate amount of USD 105 million in Dolphin, part of which could be reimbursed to the Company, depending the final structure of the investment group.
Regarding the investment in Dolphin, we have agreed that the Company will only pay the proportional expenses actually incurred in order to support the investment.
IDBD is one of the largest and most diversified investment groups in Israel, through its subsidiaries it has interests in many markets and industry sectors, such as real estate, retail, agribusiness, oil and gas production, telecommunications, etc.; is the controlling company of Clal Insurance (Insurance Company), Cellcom (Mobile Telecommunication), Koor Industries (owner of 40% of Makhteshim Agan Industries, Agrochemicals), Super-Sol (Supermarkets), PBC (Real Estate) among other companies.
The closing of this transaction will take place in the following months, meanwhile Dolphin has designated Mr. Eduardo Sergio Elsztain as member of the board of IDBD.