Tel Aviv — Israel Corp. is considering the sale of up to 7 percent of its stake in Israel Chemicals Ltd. (ICL) as part of a planned offering on the New York Stock Exchange. The holding company, which holds a majority interest in ICL, said it was considering the sale of shares to an international financial company, which would then sell or distribute them, sell them directly, or a combination of both options. The Israel Corp. board of directors instructed management to proceed with plans for such a sale. Israel Corp. holds a 52.3 percent stake in ICL. ICL shares current trade only the Tel Aviv Stock Exchange. The value of the 7 percent is currently around $760 million. "The purpose of the deal is to increase the flexibility of the company’s capital structure and create the necessary infrastructure, and reduce the company’s net debt," Israel Corp. said. The holding company added that it considers its holdings in ICL as a strategic investment. Israel Corp. said if the deal is consummated it would take place during 2014. However, the company said that the board had not yet decided on a deal, its structure, or the exact number of ICL shares to be offered, and there is no assurance that the deal will in fact be completed. The latest moves comes as the holding company is trying to reduce its overall debt due to losses at two of its other holdings: Bazan Group (refinery and petrochemicals) and Zim Israel Navigation Co. In addition, it is also part of a plan announced last year to split Israel Corp. into two separate entities, one that would continue to hold stakes in ICL and Bazan, and a new company that would own Zim, Coros, Tower Semiconductor, and IC Power. Israel Corp has a debt of $1.4 billion to Israeli and foreign financial institutions as of the end of the third quarter of 2013.
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