US
investor to buy Dori Engineering stake for $31m - Northern
Group owner Alex Dembitzer will buy half of Acad Building
& Investments' 90% stake in the company
Uri Dori Engineering Works Corp. (TASE: DORI) controlling
shareholder Acad Building & Investments Ltd. has signed
an MOU with Alex Dembitzer, and owner of New York-based
Northern Group Inc., under which it will acquire half
of Acad's 90 percent stake in Dori Engineering. Dori Engineering
president Uri Dori will continue to own the other half
of Acad's stake. Under the MOU, Dembitzer will give the
Uri Dori a $31 million owners loan for the Acad shares,
reflecting a market cap of $69 million for Dori Engineering.
The deal is subject to due diligence.
Uri Dori will use $19 million of the proceeds to buy
out the 33 percent stake in Acad held by Amethyst, owned
by Ronen Kristal. Under an earlier agreement between Dori
and Kristal, they agreed that if Uri Dori was unable to
raise the purchase price by September, Kristal could buy
Uri Dori's stake in Acad under a price to be set in a
buy-me-buy-you deal.
Under the agreement with Dembitzer, Uri Dori will continue
as president of Dori Engineering. Dori Engineering is
currently building 3,500 apartments in Israel and has
contractors orders worth NIS 650 million. The company
recently reported that a foreign investor had agreed to
acquire a third of Dori's Polish venture Ronson Development
Group for ˆ52.5 million. Ronson is building 2,200 apartments
in Poland.
Dori Engineering posted a net profit of NIS 500,000 on
NIS 163 million revenue for the second quarter of 2006.
Northern Group owns over one million sq.m. of property
in major US city centers.
