Koor Conducting Negotiations for Sale of Sheraton Moriah,Israel
DECEMBER 7, 2006. The negotiations are based on an enterprise value for Sheraton Moriah of approximately $175 million (before net debt of approximately $133 million), and an enterprise value for the Accor-Clal companies of approximately $88 million (before net debt of approximately $61 million).
Koor Industries Ltd. (NYSE: KOR) ("Koor") a leading Israeli holding company announced today that Koor and Clal Tourism Ltd. ("Clal Tourism") are conducting negotiations with Azorim Development & Construction Co. Ltd. ("Azorim") for a combined transaction regarding a potential sale to Azorim of Koor's holdings (56.5%) in its subsidiary, Sheraton Moriah Hotels & Resorts Israel Ltd. and Clal Tourism's holdings (100%) in its subsidiaries Accor-Clal Israel Hotels (1995) Ltd. and Accor-Clal Israel Hotel Management Company Ltd.
The negotiations are based on an enterprise value for Sheraton Moriah of approximately $175 million (before net debt of approximately $133 million), and an enterprise value for the Accor-Clal companies of approximately $88 million (before net debt of approximately $61 million).
IDB Development Corporation Ltd. ("IDBD") holds directly and through Discount Investment Corporation Ltd. approximately 46% of Koor's outstanding shares. Clal Tourism is wholly owned by IDBD.
There is no certainty that these negotiations will lead to any definitive agreement. Any definitive agreement will be subject to conditions precedent including receipt of all requisite corporate approvals of the parties and other approvals under applicable law. Koor is reviewing the accounting treatment of the transaction. In the event that Koor will record a gain as a result of the consummation of such transaction, the gain is currently estimated at approximately NIS 14 Million.
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