Blackstone, Israel’s Avgol in Talks on Possible Acquisition
Stock Chart for Avgol Industries 1953 Ltd (AVGL)
“As part of ongoing considerations of mergers, acquisitions or other types of cooperation with different parties, Avgol is in initial negotiations with Blackstone,” the Tel Aviv-based company said in a filing to the Tel-Aviv Stock Exchange today. Calcalist earlier reported that Blackstone was looking to buy Avgol from Israel Petrochemical Enterprises Ltd. (PTCH)
“This is definitely the first icebreaker in the potential for significant acquisitions in the local market by private equity and international investors,” said Zach Herzog, equity sales trader at Psagot Investment House Ltd. in Tel Aviv.
In January, the New York-based private equity company and DDR Corp. agreed to purchase 46 U.S. shopping centers from a unit of Israeli real estate investment company Elbit Imaging Ltd. for $1.43 billion. Blackstone has expressed an interest in acquiring a stake in Partner Communication Co. (PTNR), the nation’s second-largest mobile phone company, Calcalist reported in January.
Avgol rose 0.9 percent to 2.896 shekels at the 4:30 p.m. close in Tel Aviv today, the highest level since Feb. 22. Israel Petrochemical, a maker of raw materials for plastic, holds a 23.7 percent stake in Avgol, according to data compiled by Bloomberg.
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