10th May 2016 10:31
LONDON (Alliance News) - BSD Crown Ltd on Tuesday said Israel 18, the controlling shareholder of BSD Crown's own respective largest investor, has entered into a settlement covering payments it owes to an investor which had called for the removal of the majority of BSD Crown's board.
BSD said Israel 18 has entered into a settlement to pay USD7.7 million to Naftali Shani and Arnon Gicelter within 90 days. Should Israel 18 not make the payment in time, a representative of BGI Investments, the controlling shareholder of BSD Crown, would be required to sell shares in BGI to cover the initial payment.
BSD added the settlement will mean the trustees, Shani and Gicelter, will withdraw their request to convene an extraordinary general meeting of BSD Crown shareholders. The pair had been seeking to remove the majority of BSD's directors.
Back at the beginning of March, BSD had said it had received a request from shareholder Rotenstreich Gitzelter Trust Co Ltd in early February to convene an extraordinary general meeting in order to remove the directors of the company, except non-executive Zvi Shur, and replace them with its own nominees.
At that time it had said that it believed Rotenstreich held around 10.3 million shares in the company, or an around 9.3% stake, on trust for the Naftali Shani Group amongst others, as a security in connection with a share purchase agreement entered into by BSD's indirect controlling shareholder, Israel 18.
However, whether Naftali Shani could call a general meeting was disputed by BSD Crown and Israel 18, on account of a dispute over the ownership of that 9.3% stake.
BSD shares are currently suspended.
By Sam Unsted; [email protected]; @SamUAtAlliance
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