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China National Chemical Corp. (ChemChina), agreed to acquire Koor’s remaining 40% stake in Tel Aviv-based Adama Holding Ltd., one of the world’s leading crop protection companies, for $1.4 billion, consisting of $230 million in cash and the assumption of $1.17 billion in debt. The deal values Adama’s equity at $3.5 billion. Discount Investment Corp. Ltd. (DIC) (TLV: DISI), the parent company of Koor, and a constituent of the TA-100 Index, said it would report a capital gain of 690 million shekels ($178.5 million) from the sale to ChemChina. Discount Investment shares jumped 22.55% closing at 10.90 shekels in Tel Aviv, in their biggest gain in years. Discount Investment Corporation Ltd. is a holding company based in Israel, controlled by IDB Holding Corp. Ltd., both of which are controlled by their chairman, Argentine tycoon Eduardo Elsztain. ChemChina, through its subsidiary China National Agrochemical Corp., had first acquired 60% of Adama from Koor for $2.4 billion, in October 2011. ChemChina is a state-owned enterprise established through a reorganization and consolidation of China’s former Ministry of Chemical Industry Ministry subsidiary companies. With revenues of $45 billion in 2015, ChemChina is China’s largest chemical company. It has more than 140,000 employees, of which 48,000 are outside China. The move comes a month after the China Securities Regulatory Commission (CSRC) published a proposed amendment to Chinese securities regulations, now allowing transactions in which a foreign entity may be combined with one that is publicly-traded in China. The deal paves the way for Adama’s contemplated combination with Sanonda, ChemChina’s smaller agrochemical production subsidiary publicly-traded on the Shenzhen Stock Exchange, through a reverse merger, with the combined company gaining access to China’s capital markets. Sanonda’s shares, which have been suspended from trading since the intended combination with Adama was first announced in August 2015, are expected to resume trading on August 4, 2016. Subject to receiving all required regulatory and corporate approvals, Adama’s combination with Sanonda is expected to be completed in the first half of 2017, resulting in a publicly-traded, fully integrated entity. “These recent developments enable Adama to move forward with the execution of its combination with Sanonda, which together with its rapidly progressing commercial and operational build-up in China, form a key step towards the realization of its China strategy,” said Adama’s spokesperson Nina Zoukelman. “Adama, which has delivered market-leading performance over the past few years, is now well poised to cement its unique strengths and create a leading, China-global crop protection company.” “Following the combination with Sanonda, the combined company will continue to be run by Adama’s global management team, with China becoming a significant geographical business cluster, and it will retain the Adama name and brand. The combined company will continue to be headquartered in Israel and remain committed to its Israeli and global business culture, as well as the continued growth of its Israeli operations. Adama’s bonds will continue to be publicly-traded on the Tel Aviv Stock Exchange,” Zoukelman added. Adama Agricultural Solutions Ltd. (formerly Makhteshim Agan Industries Ltd.) is an Israeli manufacturer and distributor of branded off-patent crop protection products including herbicides, insecticides and fungicides. The group has manufacturing facilities worldwide with key facilities in Neot Hovav, Beer Sheba, Ashdod and Brazil. In addition, the group has smaller plants in Colombia, Poland, Spain and Greece. With one of the most comprehensive and diversified portfolios of differentiated, high-quality products, Adama’s approximately 4,900 people reach farmers in over 100 countries across the globe, providing them with solutions to control weeds, insects and disease and improve their yields. The company was founded in 1945, when Zvi Zurr and Michael Pikarski established the Agan Cooperative for the development of chemical products. They were later joined by Israel Tamir and Eliyahu Teomim. In 1954 the cooperative was dismantled and incorporated as Agan Chemical Manufacturers for the development and production of herbicides. Zurr left Agan and relocated to the Negev where, in 1952, Makhteshim Chemical Works, producer and distributor of insecticides and fungicides, was established with funding from the Nir Company of the Histadrut Labor Federation. In 1973, Agan relocated once again to larger facilities in Ashdod, and established a partnership with Makhteshim for worldwide distribution of their products. In 1997, the two companies merged to form Makhteshim Agan Industries Ltd. Discount Investment Corporation Ltd. (TLV: DISI), founded in 1961, remains one of the largest and most prominent holding companies in Israel. DIC has holdings in companies that are market leaders in their specific fields, including Cellcom, the largest cellular operator in Israel (41.8%); Shufersal, the largest grocery retail chain in Israel (52.9%); Property and Building Corporation, one of the largest real-estate groups in Israel (76.5%); and Elron, a high-tech operating investment company (50.3%). IDB Group is one of Israel’s preeminent business groups, holding leading corporations in key business sectors alongside an ever-growing, global presence through diverse portfolio companies and joint ventures. IDB Development Corp. Ltd., founded in 1981, is the parent company through which IDB Holding Corp. steers IDB Group’s activities. The group’s main arms are its investment arm Discount Investment Corp. Ltd. (TLV: DISI), and its insurance and finance arm Clal Insurance Enterprises Holdings Ltd. In addition to IDB and Discount Investment Corp., Eduardo Elsztain is chairman of IRSA Inversiones y Representaciones SA (ADR)(NYSE: IRS), IRSA Propiedades Comerciales SA (formerly Alto Palermo SA) (NASDAQ: IRCP), Banco Hipotecario SA (BCBA: BHIP), CRESUD (NASDAQ: CRESY), BrasilAgro Sp (ADR)(NYSE: LND; SAO: AGRO3), BACS Banco de Crédito & Securitización SA, and Austral Gold (ASX: AGD) an Australian precious metals mining and exploration company with a portfolio of assets in South America, among others. IDB Holding Corp. was voluntarily delisted from the Tel Aviv Stock Exchange in August 2015. In October 2015 the group controlled by Eduardo Elsztain (IRSA, Dolphin Fund and IFISA) took effective control of IDB Development Corp. (IDBD), and as such CRESUD (NASDAQ: CRESY; BASE: CRES) started consolidating IDBD in its financial reports as of the quarter ending March 31, 2016. CRESUD’s shares closed up 3% on NASDAQ at $16.06 on Friday, prior to the Adama sale announcement today. This was the highest price CRESUD’s shares traded in five years, bringing the company’s market value to roughly $795 million. According to industry analysts the stock is “uptrending” with “very positive momentum,” and is said to have a price target of $20.15. CRESUD, based in Buenos Aires and founded in 1936, is a leading Argentine agricultural company engaged in the production of basic agricultural commodities with a growing presence in the Brazilian agricultural sector through its investment in BrasilAgro, as well as in other Latin American countries. Its business model focuses on the acquisition, development and exploitation of agricultural properties having attractive prospects for agricultural production and/or value appreciation, and the selective sale of such properties where appreciation has been realized. CRESUD is also engaged in the Argentine real estate business through its subsidiary IRSA, one of Argentina’s largest real estate companies. Photo: Eduardo Elsztain, Chairman of IDB, Discount Investment Corp, IRSA, CRESUD, BrasilAgro and Banco Hipotecario.]]>