The Makhteshim Agan Group reported an agreement in principle for compromise concerning class action regarding the ChemChina transaction.
Pursuant to the Immediate Reports dated January 16, 2011, May 16, 2011, May 24, 2011, June 5, 2011 and June 6, 2011, the Company announces that Koor Industries Ltd ("Koor") has informed the Company that:
Pursuant to the Immediate Reports of Koor in respect of the Class Action ("the Action"), that was served against Koor and the Company in respect of the transaction with ChemChina, and in respect of the interim ruling handed down by the Tel-Aviv District Court on May 15, 2011, the parties to the Action have reached an agreement in principle on a compromise concerning the Action, whereby Koor shall pay the Company's public shareholders that are entitled to consideration as part of the ChemChina transaction, compensation in the inclusive amount of USD 45 million, subject inter alia, to closure of the ChemChina transaction and receipt by Koor of the non-recourse loan as part thereof.
Thus Koor will be responsible for an additional payment to the party bringing the class action and its representative (subject to approval of the court).
The compromise arrangement is subject to signature of the compromise agreement between the parties, and the procedures in this matter as stipulated in the Class Action Law, 2006, including the court's approval to the agreement.
There can be no certainty that the compromise will become effective.