State-owned China National Chemical Corp. is seeking a reduction in the price of its proposed deal to acquire a majority stake in Israel's Makhteshim Agan Industries, according to a statement released late Sunday by Koor Industries, which controls the agro chemical company.
ChemChina wants to reduce the valuation from $2.72 billion to $2.4 billion, Koor said. ChemChina is opposed to allowing the sellers to have a put option, which was included in the original framework of the deal announced last month.
Koor added that the revised deal may also be for fewer shares of MA Industries to be sold by Koor. It would mean that Koor would retain more than the 30% stake envisioned under the original deal.
Last month Koor had announced that it had reached a tentative understanding on a deal, whereby ChemChina would buy the public's entire stake in MA Industries as well as 17% from the parent company. At the time, Koor said it would retain a minority 30% stake in the company.
If a deal is eventually reached, it would be the largest ever Chinese investment in an Israeli company and the first in the country's chemical industry.
ChemChina, the largest basic chemical producer in the country, mainly focuses on new chemical materials, basic chemical materials, oil processing, agrochemicals, rubber products and chemical equipment.
ChemChina wants to reduce the valuation from $2.72 billion to $2.4 billion, Koor said. ChemChina is opposed to allowing the sellers to have a put option, which was included in the original framework of the deal announced last month.
Koor added that the revised deal may also be for fewer shares of MA Industries to be sold by Koor. It would mean that Koor would retain more than the 30% stake envisioned under the original deal.
Last month Koor had announced that it had reached a tentative understanding on a deal, whereby ChemChina would buy the public's entire stake in MA Industries as well as 17% from the parent company. At the time, Koor said it would retain a minority 30% stake in the company.
If a deal is eventually reached, it would be the largest ever Chinese investment in an Israeli company and the first in the country's chemical industry.
ChemChina, the largest basic chemical producer in the country, mainly focuses on new chemical materials, basic chemical materials, oil processing, agrochemicals, rubber products and chemical equipment.
