Makhteshim-Agan, Koor Gain on Agreement to Settle Lawsuit
Makhteshim-Agan Industries Ltd. (MAIN) rose as Koor Industries Ltd. (KOR) agreed to settle a class-action lawsuit paving the way for the completion of a sale of the world’s largest maker of generic agrochemicals.
The shares of Makhteshim jumped 5.2 percent, the most since March 30, to 18.51 shekels at the 4:30 p.m. in Tel Aviv, valuing the company at 8.1 billion shekels ($2.4 billion). Koor increased 5.6 percent, the most since Dec. 28, to 67.23 shekels.
Koor, which owns 47 percent of Makhteshim, will pay other shareholders $45 million to settle the lawsuit, according to a statement to the Tel Aviv Stock Exchange today. The lawsuit, filed in January, claimed the distribution of proceeds from the sale put public shareholders at a disadvantage to Koor.
The settlement is a “win-win situation all around,” Gilad Alper, a senior analyst at Meitav Investment House Ltd. in Tel Aviv, said by telephone. “It removes the last barrier before completing the deal.”
China National Chemical Corp. on Dec. 28 agreed to acquire 7 percent of Makhteshim from Koor and offered to buy all the publicly traded stock to bring its stake to 60 percent in a deal that valued Makhteshim at $2.4 billion. Koor, which is controlled by Nochi Dankner’s IDB Holding Corp. and Discount Investment Corp. (DISI), would continue to own 40 percent of Makhteshhim.
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