Emilia Sells Adumim Shell Company to Alex Dembitzer

Michael Rochvarger

Oded Feller's firm Emilia Development sealed a deal to sell its 68% controlling interest in shell company Adumim Food Additives to American-Jewish businessman Alex Dembitzer, for about NIS 21.9 million last weekend.

The sum reflects Emilia's share of the cash Adumim holds, in addition to a NIS 3.9 million premium.

The parties also agreed that Emilia Development would have the right to buy three land parcels that Adumim owns in Mishor Adumim in the West Bank, east of Jerusalem, for about NIS 4.6 million.

Emilia Development sold Adumim's food additive operations to Frutarom in 2007 for $4.25 million. Since then, Adumim has simply been a stock market shell company.

For Dembitzer, 47, a New York resident, the deal with Adumim is a return to the Israeli capital markets. In 2007, he sold his interest in Akad, which controls the U. Dori group, to his then-partner Uri Dori for $44 million. Dori immediately sold Dembitzer's interest to Gazit Globe.

Dembitzer had acquired his interest from an investor group in November 2006 for $31 million.

Dembitzer has a controlling interest in the Northern Group real estate firm. In an interview three years ago with TheMarker, he said his company had 2 million square meters of developed real estate in city centers across the United States, including New York, Detroit and Philadelphia, and managed about 5,000 rental apartments. The company's assets at the time were estimated to be worth more than $500 million.

It is not clear what the Northern Group, which is a private company, is currently worth, following the major downturn in the U.S. real estate market.