GMM Capital LLC takes over 13% shares of Delta Galil
03 Jul '07
4 min read
Delta Galil Industries Ltd reported that Mr. Dov Lautman, founder of the Company, informed the Company that he is transferring the effective control of the Company to Mr. Isaac Dabah, and that he signed an agreement to sell 2,500,000 shares of Delta, representing 13.3% of the shares of Delta to GMM Capital LLC,a company controlled by Mr.Dabah.
The consideration will be no less than $21,250,000, reflecting a price of $8.50 per share, and will be no greater than $25,000,000, reflecting a price of $10.00 per share.
The final price per share will be determined based on the price per share in the Tel Aviv Stock Exchange until December 31, 2008. The majority of the consideration will be paid at the closing of the transaction on July 5, 2007. The balance will be paid on December 31, 2008.
After completion of the transaction, Mr. Lautman will continue to hold, through companies under his control, 2,144,993 shares, representing 11.4% of the shares of the Company.
After completion of the transaction and the purchase of the shares from Mr. Lautman, Mr. Dabah will hold, directly and indirectly, a total of 7,855,115 shares of Delta, constituting 41.9% of Delta shares.
Mr. Lautman: "After leading Delta for 32 years since its foundation, I have decided, in view of my health condition and my responsibility for Delta, its employees and future prosperity, to sell control of the Company to Isaac Dabah, my partner in leading Delta for the past two years."
Delta is my lifetime's work. I reached my decision after thorough reflection and with the intention to ensure continuity in leadership.