ChemChina will pay Discount Investment $1.4 billion for the 40% stake
Discount Investment Corporation (TASE: DISI) today reported signing an agreement for the sale of its stake in Adama Holding Ltd. (TASE:ADMA.B1) (40%) for an overall payment of $1.4 billion. Discount Investment will sell the stake to its Chinese partner ChemChina, which controls the remaining Adama stake.
Deal completion is subject to several conditions, including the approval of regulatory authorities in China and Israel and the consent of the Chinese bank that provided the loan funds.
As Discount Investment reported in the past, the deal includes a payment of $230 million, in addition to the original deal, and the write-off of a $1.1 billion loan the Chinese provided to Discount Investment in 2011, as part of the deal to acquire control of Adama. The current deal reflects a market cap of $3.5 billion for Adama.
Adama is considered one of the world's leading crop protection companies, offering farmers solutions and services to help improve crops.