Each issue of PaperMoney is approximately 500 fact filled pages.
Logout
Click here for Pulp & Paper Radio International
The Paperitalo Library
Free Downloads
Search
My Profile
Login
Management Side
Hadera Paper Signs Agreement to Gain Shares of Mondi Hadera
Print

Hadera, Israel, 08 September 2010 -- /PRNewswire/ -- Hadera Paper Ltd. (AMEX:AIP) signed an agreement on 08 September 2010 by which is will acquire 25.1% of the issued and outstanding share capital of Mondi Hadera (the acquisition transaction) from Mondi Hadera Ltd., a subsidiary of Mondi Group, which holds, before the transaction, 50.1% of the issued and outstanding share capital of Mondi Hadera.

For details regarding Mondi Hadera and regarding Mondi Group, see Section 23.1 to the Hadera Paper's periodical report.

Before the transaction, Hadera Paper holds 49.9% of the issued and outstanding share capital of Mondi Hadera. On completion of the acquisition transaction, the company will hold 75% of the issued and outstanding share capital of Mondi Hadera, while Mondi Group will hold the remaining 25%.

In consideration of the shares being sold, the company will pay Mondi Group, from its own resources, upon finalization of the acquisition transaction, a sum of EUR 10.364 million.

The finalization of the acquisition transaction is contingent upon meeting several preconditions, including the approval of the antitrust supervisor. In the event that the preconditions are not met in their entirety by the end of February 2011, each of the parties can cancel the agreement.

The acquisition transaction includes, among other things, amendment of the existing shareholder agreement between the parties pertaining to their holdings in Mondi Hadera (that shall enter into force subject to the finalization of the acquisition transaction), including changes resulting from the modification of the holding percentages, including the protection of minority interests, rules for the continued cooperation between the shareholders and Mondi Hadera, a noncompetition clause, dividend distribution policy, etc., all subject to the provisions of the law.

The acquisition transaction includes the amendment of the existing agreements between the shareholders and Mondi Hadera (that shall enter into force subject to the finalization of the acquisition transaction), including a marketing agreement, rental agreement, agreement for the provision of services and the signing of new agreements (that shall enter into force subject to the finalization of the acquisition transaction), including a subletting agreement and an agreement governing the use of the Mondi brand.

The call options held by the company and by Mondi Group and the put options held by Mondi Group (as detailed in Section 23.1.1.3 to the company's periodical report), shall remain valid after finalization of the acquisition transaction. The acquisition transaction includes amendment of the put option, stipulating that it may not be exercised during the first three years after finalization of the acquisition transaction (except for specific circumstances outlined in the agreement). Mondi Group can not sell its shares in Mondi Hadera for a period of three years after finalization of the acquisition transaction (except for specific circumstances outlined in the agreement).

Hadera Paper is analyzing the earnings that will be generated (in the event that any such earnings are generated) on account of the accounting treatment in accordance with generally accepted accounting principles, due to the consolidation of Mondi Hadera in the financial statements of the company, if and when the acquisition transaction is finalized.
 

Related Articles:


Powered by Bondware
News Publishing Software

The browser you are using is outdated!

You may not be getting all you can out of your browsing experience
and may be open to security risks!

Consider upgrading to the latest version of your browser or choose on below: