Ethemba to buy 45% interest in Avgol

UK-based Ethemba will buy 45% interest in Avgol held by Israel Petrochemical Enterprises (IPE) for a consideration of $106.8m, following the approval from IPE’s board of directors. IPE plans to use the sales proceeds to clear its $500m debt. It will also get a payment of $16m depending upon next year's financial results, reported Platts. The Israeli company will retain 21% interest in Avgol and the remaining will be traded on Tel Aviv Stock Exchange. IPE has plans to invest about $71m in new production lines in China and the US, and expand business into India. Ethemba is a private equity firm based in London, while Avgol Nonwoven Industries is a manufacturer and supplier of ultra lightweight and top quality nonwoven fabrics.