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Polar Investments has signed a memorandum of understanding to sell its holdings in Hazera Genetics to French company Vilmorin for NIS 134 million.

The deal values Hazera at NIS 316 million, 84 percent higher than the company's market value, and sent Hazera shares soaring by almost 15 percent on the Tel Aviv Stock Exchange yesterday. But though the company's valuation under the deal is 7 percent above Hazera's equity, it is 6 percent below the value registered in Polar's books.

Vilmorin previously held 12.4 percent of Hazera, but if the deal is concluded, it will become the controlling shareholder, with a 54.4 percent stake. However, the purchase is subject to a right of first refusal held by The SeedGrowers Company, which has a 37 percent holding in Hazera. The deal is also dependent on Polar buying a NIS 19 million real estate plot near Haifa from Hazera.

Polar Investments chair Avigdor Kellner called the deal an excellent opportunity for Polar and told reporters that the proceeds will be used for a number of new investments currently under consideration.