May 13, 2018 / 8:03 AM / 2 months ago

Indorama Ventures to buy majority stake in Israel's Avgol

JERUSALEM, May 13 (Reuters) - Bangkok-based petrochemical producer Indorama Ventures has agreed to buy a 65.72 percent stake in Israel’s Avgol Industries for about $314 million, the companies said on Sunday.

Indorama will pay 5.78 shekels per share for a 50.76 percent in Avgol held by HFH International, and 14.96 percent owned by Leumi Partners, a subsidiary of Bank Leumi.

Bank Leumi said it expects a pre-tax gain of 118 million shekels ($33 million) from the sale.

Avgol is a manufacturer of nonwovens for hygiene applications and holds a global market share of 10 percent. Its fabrics are used in diapers and feminine hygiene products.

Shares in Avgol, which has a market valuation of 1.16 billion shekels, were up 8.4 percent to 4.28 shekels in morning trade.

The transaction is expected to be completed during the second half of 2018, subject to regulatory approvals, Indorama said. ($1 = 3.5732 shekels) (Reporting by Ari Rabinovitch, Editing by Tova Cohen)

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