No details were released about the sale, though sources close to the deal reported the purchase price to be around $12 million.
Tadmor said that Phoenicia fitted in with I.E.L.'s strategy to buy into Israeli industry. "Our intention is to develop Phoenicia's activities with the aid of its experienced and veteran staff, while concentrating on developing client services. Our aim is to continue to improve the company's image and the quality of its products."
The sale of the glass factory is the fourth sale made by investment group 3I, controled by British businessman Ian Davis and Aviv Algor. Yesterday, Algor rejected the idea that the sales were connected to 3I's plan to divest from its operations in Israel, noting they were in keeping with the company's original plans.
Davis and Algor are both currently under investigation by the Israel Securities Authority over the alleged improper use of a front-man to hold shares in the Middle East Tube Company - in which 3I held shares - in order to promote a business deal with another company also controled by Davis and Algor. Following the investigation, the two sold shares in the Middle East Tube Company to Gaon Holdings, and part of its holding in Vita Pri Galil to Zina. Last month, Zina filed a lawsuit against Algor and Davis, over alleged acts of fraud concerning a share buy-back deal.
Algor said yesterday that the dispute was purely a business one. "We are obligated to buy their shares," he said," but we have complaints about the price."