According to Platts.com, Israel Petrochemical Enterprises Ltd. (IPE) is selling a 45% stake in its Avgol Ltd. subsidiary to private equity company Ethemba for $106.8 million.
Parties have reportedly agreed to an additional $16 million payment dependent on 2013 results. Following the sale IPE will control 21% and the remainder is traded on the Tel Aviv Stock Exchange, Platts says.
Avgol is a leading global manufacturer and supplier of nonwoven fabrics.
“IPE, which owns a minority stake in Oil Refineries Ltd, decided on the sale in order to ease its $500 million debt burden to bondholders and local banks,” Platts reports.