Oil Refineries to acquire balance of shares in Carmel Olefins

Oil Refineries, ORL, an oil refiner, has announced that its board of directors has approved the agreement with Israel Petrochemical Enterprises, IPE, under which ORL will acquire IPE's share in Carmel Olefins.

Under the approved agreement, ORL will hold 100% of Carmel Olefins’s (CAOL) shares following an exchange of shares.

On the date of closing, IPE will sell ORL its entire shareholding in CAOL, comprising 50% of CAOL’s issued share capital, in such a way that following the acquisition ORL will hold 100% of CAOL’s issued share capital.

Furthermore, on the closing date, ORL will sell IPE 3.74 million of its shares in IPE, representing 12.29% of IPE’s outstanding share capital, for a total consideration for $40 million, representing a company value of $325 million for IPE.