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Danny Goldstein, who holds a 15.5 percent stake in Formula, yesterday sold all his holdings in the company. In exchange, Goldstein will receive $25 million in cash and $43 million in convertible bonds for Iscal Holding shares. Iscal Holding will be Formula's major shareholder. The deal gives a value of $350 million for Formula, which is trading at a market value of only $156 million.

Goldstein's brother, Gadi, sold his 2.5 percent stake in the company as well yesterday.

The securities for the bonds that Goldstein received were Formula shares, which means that if Iscal cannot pay the debt he will get the stocks back. The bonds come due in three years, but Goldstein has a three-year option to convert the bonds for a 53 percent controlling stake in Iscal.

Goldstein said yesterday that the deal was a good one for him and for Formula, and that the goal now was to consolidate the controlling interest in the company. He said that he would have had to take out large personal loans to increase his holdings in the company to 40 percent. Iscal, as a public company, can acquire additional Formula shares by raising capital, he said. Goldstein added that he will continue to head Forumula for the next three years, and since he can appoint half of Iscal's directorate he will maintain control of the company.

The purchase of the shares from Goldstein was made possible after Rafi Peled and Arie Givoni acquired control of Iscal Holdings yesterday. Over the past week, the Peled-Givoni group, through Hayal Holdings (which it already controls through Peled Investments), acquired a controlling interest in Feuchtwanger Investments, in a deal worth NIS 80 million.