Hadera Paper Offers to Fully Acquire Carmel Container Systems

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Hadera Paper, Israel, reported this week that it is offering to purchase 186,704 ordinary shares of Israel-based Carmel Container Systems for $22.50 per share, in cash, less any required withholding taxes and without interest. Carmel designs and manufactures paper-based packaging and related products. Its product line includes corrugated shipping containers, triple-wall containers for sea/air shipments and packaging of sensitive instruments, shipping pallets, folding cartons, and laminated e-flute consumer packaging.

As of August 31, Hadera held 1,553,170 Carmel shares, or some 89.3% of that company's issued and outstanding share capital and voting rights. The offer, which expires at 10:00 a.m., EDT, on October 4, is conditioned upon the acceptance of at least 99,711 additional shares, constituting approximately 5.7% of Carmel's share capital and voting rights. If at least this number of shares is tendered by shareholders, then under Israeli law, Hadera would automatically acquire the entire number of shares subject to the tender offer, including all shares owned by non-tendering shareholders, and would then own 100% of Carmel's share capital and voting rights.