Israel Corp May Sell Up to 7 Percent of ICL in NYSE Stock Listing

ICL is the world's sixth-largest producer of potash and Israel Corp's most lucrative holding.

Reuters
Reuters
Send in e-mailSend in e-mail
Reuters
Reuters

Israel Corp, one of Israel's largest conglomerates, said on Wednesday it was examining the sale of up to 7 percent of Israel Chemicals (ICL) .

It said the sale of ICL, in which Israel Corp holds 52.3 percent, is part of ICL's planned New York Stock Exchange (NYSE)listing. Israel Corp said the deal will likely take place during 2014.

"The aim of the transaction is to increase flexibility in the company's capital structure and to create an infrastructure to reduce the firm's net debt," Israel Corp said in a statement to the Tel Aviv Stock Exchange (TASE), calling ICL a "strategic holding."

ICL, the fifth-largest company on the TASE, is the world's sixth-largest producer of the crop nutrient potash and Israel Corp's most lucrative holding. In November, ICL said it was preparing a dual listing of its shares on NYSE to aid its growth by improving access to international financial markets and providing flexibility in financing mergers and acquisitions.

No date for the offering on Wall Street has been announced.

Canada's Potash Corp owns 14 percent of ICL. Attempts to increase its stake have been rebuffed by the Israeli government. Nearly 34 percent of ICL, which has a market value of 38.3 billion shekels, is traded on the TASE.

ICL's shares were 1.4 percent lower in late trading in Tel Aviv, while Israel Corp gained 0.8 percent.

Separately, ICL on Wednesday confirmed it earned $195 million in the fourth quarter, down from $247 million a year earlier. Revenue rose 9 percent to $1.42 billion. Last month, ICL issued identical preliminary results.

The Dead Sea Works potash fertilizer manufacturing plant belongs to Israel Chemicals.Credit: Bloomberg

Click the alert icon to follow topics:

Comments

SUBSCRIBERS JOIN THE CONVERSATION FASTER

Automatic approval of subscriber comments.

Subscribe today and save 40%

SUBSCRIBE
Already signed up? LOG IN

ICYMI

Palestinians search through the rubble of a building in which Khaled Mansour, a top Islamic Jihad militant was killed following an Israeli airstrike in Rafah, southern Gaza strip, on Sunday.

Gazans Are Tired of Pointless Wars and Destruction, and Hamas Listens to Them

Trump and Netanyahu at the White House in Washington, in 2020.

Three Years Later, Israelis Find Out What Trump Really Thought of Netanyahu

German soldier.

The Rival Jewish Spies Who Almost Changed the Course of WWII

Rio. Not all Jewish men wear black hats.

What Does a Jew Look Like? The Brits Don't Seem to Know

Galon. “I’m coming to accomplish a specific mission: to increase Meretz’s strength and ensure that the party will not tread water around the electoral threshold. If Meretz will be large enough, it will be the basis for a Jewish-Arab partnership.” Daniel Tchetchik

'I Have No Illusions About Ending the Occupation, but the Government Needs the Left'

Soldiers using warfare devices made by the Israeli defense electronics company Elbit Systems.

Russia-Ukraine War Catapults Israeli Arms Industry to Global Stage