| GE to invest $25m in Dori subsidiary Ronson - The deal gives Dori's Polish development venture a company value of $105 million
Uri Dori Engineering Works Corp. (TASE: DORI) today announced
that General Electric Company (NYSE:GE) subsidiary GE Real
Estate Poland Sp zoo would buy 20.9 percent of Dori and
IT International Theaters Ltd.'s joint Polish venture, Ronson
Development Group, for ˆ25 million. The deal gives Ronson
a company value of ˆ105 million, before money. Dori and
IT International Theaters each currently own 50 percent
of Ronson; their stakes will be diluted to 39.55 percent
each after the transaction.
GE Real Estate Poland will provide Ronson with a ˆ2.6 million
owners' loan, and ˆ15 million of the investment will be
used to repay Ronson's current owners' loans to Dori and
IT International Theaters. Ronson's outstanding loans from
these companies will be ˆ10 million. The balance of the
investment will be channeled to new projects Ronson is developing.
When the deal is closed, Dori expects to post a NIS 35
million capital gain. This is an impressive result, especially
since Dori acquired an additional 25 percent of Ronson in
January from its Polish partner for ˆ10 million, at a company
value of ˆ40 million. Ronson's company value under the present
GE deal, just ten months later, is 2.5 times as much.
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