Koor Industries Ltd., an Israeli investment holding company, announced today that wholly owned Telrad Networks Ltd. have received a $50.4 million loan repayment from Nortel Networks Israel. Koor received $37.8 million, and Telrad the balance of $12.6 million.
The loan, given to Nortel Networks Israel in August 2000, was originally due for repayment on August 31, 2003. As part of the overall transaction, Koor has agreed to waive any interest charges arising from early repayment.
Koor and Telrad, who together hold 28 percent of Nortel Networks Israel, also expect to exercise, on October 31, 2003, or earlier, their Put Option to sell their holding in Nortel Networks Israel to Nortel Networks for approximately $3.9 million. Following completion of both these transactions Koor and Telrad will have received approximately $54.3 million in cash.
Jonathan Kolber, chief executive officer of Koor Industries, and chairman of Telrad Networks, said today "Nortel Networks Israel has been a strong partner for many years and we continue to work together to identify new avenues of cooperation, both in development and marketing."
He added: "These proceeds will assists both Koor and Telrad in further reducing their bank debt, while increasing their financial flexibility to seek new opportunities."
Koor Industries Ltd. is one of Israel's largest and leading investment holding companies. Koor Industries invests actively in telecommunications through its holdings in ECI Telecom, Telrad Networks, and Nortel Networks Israel and owns controlling stakes in Israel's major defense electronics companies through the Elisra Group, and in Agro-chemicals through MA Industries.
Koor Industries, through its Koor Corporate Venture Capital arm invests in early stage high growth Israeli companies in the areas of telecommunications technologies, information technology, semiconductors, and life sciences. Koor Industries is traded on the Tel Aviv and New York Stock Exchanges. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
