Alex Dembitzer Investing in U. Dori

Part owner of NY's Northern Group buying 50% of Acad, which owns U. Dori

Sep 10, 2006

Alex Dembitzer, one of the owners of the Northern Group Inc of New York, is slated to buy 50% of Acad Building & Investments, which owns 90% of the shares in U. Dori Engineering (TASE: DORI).

The U. Dori group's shareholding in Acad will drop from 67% to 50%.

Under the terms of agreement with Dembitzer, he is paying the U.Dori group $31 million for the 50% stake in Acad: the deal prices that company at about $62 million.

The deal extrapolates to a value of $69 million for U. Dori itself, while its market cap on the Tel Aviv Stock Exchange is about $38 million.

U. Dori will be using $19 million of the money to buy out the 33% of Acad owned by the Amethyst group.

Technically, Dembitzer is lending the $30 million, but the loan is convertible into 50% of Acad's shares. He is expected to execute the conversion after completing due diligence checks.