Africa Israel Offers to Pay $250 Million for 60% of Indian Real Estate Company IDEB

No agreement has been signed yet due to disagreement over joint management issues.

Lev Leviev's Africa Israel has offered Indian real estate developer IDEB Projects $250 million for a controlling interest (60%) of the company. Sources close to IDEB note that the parties have yet to overcome differences regarding the future joint management of the company, so no documents have been signed.

The sources added that the owners of the Indian company feel they can continue managing the company as in the past, despite their future minority holding, while Africa Israel will have voting rights on the board of managers. Africa Israel, on the other hand, is interested in the strategic and day-to-day management of the company, if Leviev buys the controlling stake. Although an Africa Israel spokesperson denied these details, IDEB's Web site includes information on its Foreign Tieups page regarding Africa Israel and its activities, but without any specifics concerning joint projects or ongoing negotiations.

IDEB operates in the residential, hotels and industrial real estate sectors in India and has over 10 subsidiaries. IDEB was started as a single entity in 1997, on the foundation of a family company established about 60 years ago. According to data published on the company's Web site, IDEB's revenues have been growing by tens of percentage points every year. The revenue forecast for the 2007-2008 fiscal year is $250 million, compared to $150 million and $100 million in the two previous years. IDEB's goals include extending its expertise as a leading engineering and construction company in India to projects beyond the country's borders. Leviev, via Africa Israel and Denya Cebus, has been examining joint real estate ventures in India and China for the past year and a half, but without major progress on either front. Representatives of the two companies' business development in Asia have met with several companies in India and examined options for both investments in companies and joint ventures on projects. Leviev's scouting in Asia joins that of other Israeli companies interested in capitalizing on anticipated continued growth, primarily in India and China. Nochi Dankner's Property & Building and Gershon Salkind's Electra Real Estate have already embarked on projects in the subcontinent.