Press release from PR Newswire
Makhteshim Agan Industries Ltd. : ChemChina Transaction - Update
Tuesday, June 28, 2011
Makhteshim Agan Industries Ltd. : ChemChina Transaction - Update04:30 EDT Tuesday, June 28, 2011TEL AVIV, Israel, June 28, 2011 /PRNewswire/ -- Attn. Israel Securities Authority By MagnaAttn. The Tel-Aviv Stock Exchange Ltd. By Magna Dear Sir or Madam,Pursuant to the Immediate Reports dated January 16, 2011 (ref. no. 018612-01-2011), May 16, 2011 (ref. no. 149553-01-2011), May 24, 2011 (ref. no. 159246-01-2011), June 5, 2011 (ref. no. 175536-01-2011), June 6, 2011 (ref. no. 177474-01-2011), June 13 (ref. no. 182019-01-2011), June 21 (ref. no. 188973-01-2011), and June 23 (ref. no.192240-01-2011), in respect of the merger agreement dated January 8, 2011 between the China National Agrochemical Corporation ("ChemChina"), Koor Industries Ltd ("Koor") and the Company ("the Merger Agreement"), the Company announces that Koor has informed the Company as follows:On June 27, 2011 the board of directors of Koor approved Koor entering into the loan agreement ("Loan Agreement") with ChemChina and with the Export and Import Bank of China ("the Chinese Bank"), whereby as part of the completion of the Merger Agreement a loan of USD 960 million ("the Loan Principal") would be made available to Koor by ChemChina through the Chinese Bank. Similarly, the board of directors of Koor approved the wording of the letter of credit up to the amount of the Loan Principal, which would serve as collateral for provision of the loan and that will be issued to Koor at the date of signing the Loan Agreement ("Koor LC") by the Chinese Bank with the support of an international bank (the Loan Agreement and the Koor LC jointly are "the Financing Documents").Koor has informed the Company that it expects the parties to sign very soon the Loan Agreement, the accompanying documents and several additional documents required for completion of the transaction, at which time the Koor LC will also be issued.Upon the expected signature very shortly of the Financing Documents and the associated documentation required for completion of the transaction, it is expected that shortly thereafter a general meeting of the Company will be convened to approve the transaction.Yours sincerely,Makhteshim Agan Industries LtdAdv. Michal Arlosoroff, Legal Counsel & Company SecretaryContact: Rony Patishi-Chillim, IR@ma-industries.com , +972-72-2321119SOURCE Makhteshim Agan Industries LtdFor further information: .