TEL AVIV, July 5 (Reuters) - Israel’s IDB Development Corp sold 49.9 percent out of its 60.5 percent stake in Clal Industries and Investments (CII) to U.S.-based Access Industries for 1.27 billion shekels ($325 million).
Under terms of the agreement, originally announced in May, IDB will initially receive a payment of 761 million shekels, with the remaining 509 million to be paid by the end of 2012, IDB said on Thursday.
Avi Fischer, CII’s co-chief executive, will serve as CII’s executive chairman.
CII is one of Israel’s leading investment companies with holdings ranging from manufacturing-oriented activities to technology companies. It also operates units to manage its investments in biotechnology and other venture capital investments.
IDB is a holding company and subsidiary of IDB Holding .
Access, a privately held industrial group, focuses on three sectors: natural resources and chemicals; telecommunications and media; and real estate. Its holdings include Warner Music Group.
“The transaction is an important boost of encouragement to Israel’s economy, and I am convinced that CII ... will continue to grow and create economic value through entrepreneurship and innovation,” IDB Chairman Nochi Dankner said in a statement.
Len Blavatnik is chairman and founder of Access Industries.
$1 = 3.91 shekels Reporting by Tova Cohen