Federman to sell Avgol

UK, July 24, 2012 -- Israel Petrochemical Enterprises Ltd. (TASE:PTCH) controlling shareholder David Federman's need for cash has pushed him to try and sell Avgol Nonwoven Industries Ltd. (TASE:AVGL), controlled by Petrochemical Enterprises. "Globes" first reported talks for the sale of the company two months ago.

Petrochemical Enterprises said that, following approaches that it had received from various parties, it was in talks with a foreign private equity fund to sell most of its holding in Avgol. Sources close to the talks believe the potential buyer is Ethemba Capital Ltd. of the UK.

In the notice, Petrochemical Enterprises has said that there was no certainty at this stage whether the negotiations would result in a binding deal. If no deal is reached with the private equity fund, Petrochemical Enterprises may hold talks with other parties for the sale of the controlling interest in Avgol.