American Israeli Paper Mills Ltd. announces agreement to sell holding of TMM

Jan 09, 2007. /Lesprom Network/. American Israeli Paper Mills Ltd. announced that an agreement was signed with CGEA ONYX (Israel) Ltd., according to which, the company will sell to CGEA its holdings in Barthelemi Holdings Ltd., a company through which AIPM and CGEA possess holdings in TMM Integrated Recycling Industries Ltd. The company also will sell to CGEA, according to the agreement, the rest of its holdings in TMM, as follows. The sale is a part of a strategic process of focusing in the company's core business areas. As of the date of this report, the company directly holds approximately 17.8% of TMM, and indirectly through its holdings in Barthelemi, approximately 25.3% of TMM. CGEA holds approximately 45% of TMM, through its holdings in Barthelemi. According to the agreement, CGEA will purchase, subject to the term mentioned below, all of the company's holdings in Barthelemi and will become the sole shareholder of Barthelemi, in return to a total amount of approximately NIS 16 million ($3.8 million) to be paid to the company, in accordance with TMM's share value, in the following purchase offer. According to the agreement, the closing of the above transaction, is conditional to the success of a complete purchase offer that CGEA is planning to publish in the next few days, according to which CGEA intends to try to purchase all TMM's issued and offered share capital (including the company's direct holdings in TMM but excluding Barthelemi's holdings and the dormant shares owned by TMM and its subsidiaries). The company is obligated in the agreement, to sell to CGEA all its direct holdings in TMM, in the frame of the purchase offer that will be published as stated above, and on its terms. The company estimates that the transaction, if completed, will not have any essential effect on the financial outcomes of the company.