A series of agreements were executed between Avrot Industries Ltd., a public company trading on TASE, Paladex Ltd., a wholly-owned subsidiary of Avrot, and Magnezi Infrastructures Ltd., a private company controlled by the controlling shareholder of Avrot – Mr. Gabi Magnezi.
According to the transaction terms, Magnezi Infrastructures will transfer to Avrot its operations in the field of ongoing maintenance of water and sewage infrastructures, and water companies in local authorities. According to the valuation that was conducted by an independent appraiser, the value of the transferred operations is estimated to be approximately 50.1 million NIS. In return, Magnezi Infrastructures will receive approximately 48.27% of the equity in Avrot.
Avrot is a publicly traded company whose business involves, inter alia, wrapping and marketing of steel pipes and production and marketing of plastic pipes. Magnezi Infrastructures is one of the group of companies of Magnezi, whose business involves infrastructure works, such as: development and other entrepreneurship in the field of paving, construction, bridges, etc.
The transaction will be completed following receipt of approvals as required by law.
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