May 8, 2018 / 7:36 AM / a year ago

Shareholders in Israel's Avgol in talks to sell majority stake

TEL AVIV, May 8 (Reuters) - Israel’s Avgol Industries said on Tuesday its shareholders HFH International and Leumi Partners are negotiating the sale of their majority stake in the non-woven fabrics producer.

HFH holds 50.76 percent of Avgol while Leumi Partners, a subsidiary of Bank Leumi, owns 14.96 percent.

According to HFH and Leumi, there is no certainty these negotiations will lead to a binding agreement, Avgol said in a statement to the Tel Aviv Stock Exchange.

The Calcalist financial newspaper reported that HFH and Leumi have accepted an offer from an Indian company for their 66 percent holding at a company valuation of up to 1.4 billion shekels ($388.8 million). Calcalist did not name the buyer.

Avgol referred to the Calcalist report, saying if an agreement is reached, “the terms could be significantly different from those mentioned in the article.”

Avgol’s fabrics are used in diapers and feminine hygiene products.

It has a market valuation of 1.07 billion shekels. ($1 = 3.6007 shekels) (Reporting by Tova Cohen, Editing by Ari Rabinovitch)

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