The companies stated that the consideration was determined based on the updated Oil Refineries and CAOL valuation, which was conducted by the office of Prof Y Swary for the companies and which was approved, in a report, prepared by Prof Amir Barnea for ORL and by Yoram Eden for IPE.
Following the completion of the transaction, ORL holds 100% of CAOL, while IPE increases its holding in ORL to 30.7%, and Israel Corporation and the public will respectively hold 37.1% and 32.2% of the company. In parallel to completion of transaction, the Israeli government has approved an amendment to control permit which broadens IPE’s control rights in ORL, which is now jointly controlled by Israel Corporation and IPE.
Yossi Rosen, chairman of Oil Refineries, said: “The completion of this process is a focal point in the ORL’s strategic plan to expand its operations into the petrochemical sector. The consolidated company will move to strengthen its standing, by leveraging significant synergies, with a view to presenting ongoing growth. The merger will be undertaken with the full cooperation of the employees and managers of both bodies.”
Yashar Mordechai, CEO of Oil Refineries, said: “We have completed all necessary requirements to realize the merger and to quickly reap the fruits of the merger. The world is still recovering from its economic lows, and the best way for ORL, as a Company, to contend with any crises, is to join forces, while creating an efficient operating system, matched by the optimum use of our economies of scale.”
