LONDON (Alliance News) - Kimberly Enterprises NV late Tuesday said the Israeli real estate company that is set to become its new owner has still not secured the shares needed to take ownership of the company.
Kimberly said the 1.7 million shares in Engel Resources and Development Ltd, which owns a 68% stake in Kimberly, has not yet been transferred to Gabay Group Ltd, a real estate group.
Gabay and GBES Ltd struck a deal to acquire those shares last month after Kimberly's Chief Executive Lirion Or resigned.
Kimberly said, as a "precautionary measure", a district court has approved the transfer of those shares meant to head toward Gabay Group to GBES whilst Gabay seeks regulatory approval to secure the shares.
That means GBES now holds 2.9 million shares in Engel Resources and Development, equal to a 53% stake, and the Gabay Group holds 536,555 shares, equal to a 9.9% stake.
GBES will eventually transfer those 1.7 million shares to Gabay, which means those stakes will be adjusted shortly.
Accordingly, that means GBES currently holds a 36.2% economic stake in Kimberly and the Gabay Group holds an effective 6.8% economic interest in the London-listed firm.
Kimberly Enterprises shares closed down 17.4% to 0.578 pence per share on Tuesday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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