HAIFA, Israel
,
January 4
/PRNewswire-FirstCall/ -- Oil Refineries Ltd. (TASE: ORL.TA) (hereinafter: the "Company", "ORL"),
Israel's
largest oil refiner, announced that it has acquired 24.5% of Haifa Basic Oils (hereinafter: "HBO") from Paz Oil Company Ltd. (hereinafter: "Paz"), held in trust, in consideration for
NIS 59 million
, and that the acquisition has been approved by the Company's Board of Directors. The consideration is subject to adjustments if during a period of 5 years the Company will enter into an agreement to acquire an additional shareholder's holding in HBO for a consideration indicating to a value of over
NIS 240 million
for HBO.
Subsequent to the acquisition, the Company holds 74.5% of HBO's issued share capital.
For additional information on HBO's activities, please refer to the Company's Hebrew shelf prospectus from
May 29, 2008
.
As part of the transaction, the Company was notified of the withdrawal of Paz from the request for the approval of a derivative claim filed in 2006 by other shareholders in HBO against the Company, which was approved by the Israeli court, as announced on
October 25, 2009
, a decision that is currently being reviewed by the Israeli High Court (hereinafter: the "Derivative Claim"). The Company was also notified on the waiver of Paz on all rights to claim, demand or complaint of all forms and types with regards to the Derivative Claim.
As a result of the transaction, the Company expects to record a capital gain, yet to be determined.
Oil Refineries Ltd. (ORL), located in the bay area of the city of
Haifa
, operates
Israel's
largest oil refinery. ORL operates sophisticated and state-of-the-art industrial facilities with refining capacity of 9.8 million tons of crude oil per year, with a Nelson complexity index of 7.4, providing a variety of quality products used in industrial operation, transportation, private consumption, agriculture and infrastructure. The Company is also active in the area of Polymers (through Carmel Olefins Ltd.) and Aromatics (through wholly-owned Gadiv Petrochemical Industries Ltd.). ORL is traded on the Tel Aviv Stock Exchange under the ticker ORL. For additional information please visit the Company's website: http://www.orl.co.il
Company Contact:
Rony Solonicof
Chief Economist and Head of Investor Relations
Oil Refineries
Tel. +972-4-878-8320
[email protected]
Investor Relation Contacts:
Ehud Helft \ Fiona Darmon
GK Investor Relations
Tel. +1-646-797-2868 \ +972-52-695-4400
[email protected]
SOURCE Oil Refineries Ltd
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