MIRA INFORM REPORT
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Report Date : |
14.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
I. D. E. TECHNOLOGIES LTD. |
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Formerly Known As : |
ISRAEL DESALINATION ENGINEERING (ZARCHIN PROCESS) LTD |
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Registered Office : |
Hamatechet Street, Hasharon Industrial Park, Kadima 60920 |
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Country : |
Israel |
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Date of Incorporation : |
02.05.1965. |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Dealing in Research
and Development of Saline Water Desalination Processes, Concentration and
Purification of Industrial Streams, Wastewater Treatment, Heat Pumps and
Ice/Snow Machines. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
€ 3,000,000. |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Name & Address
I. D. E.
TECHNOLOGIES LTD.
Telephone 972 9 892 97 77
Fax 972 9 892 97 15
P.O. Box 5016
Hamatechet Street
Hasharon Industrial Park
KADIMA 60920 ISRAEL
HISTORY & LEGAL FORMATION
Originally
established as a private limited company, incorporated as per file No.
51-045358-2 on the 2.5.1965.
Originally
incorporated by the Government of Israel under the name of "ISRAEL
DESALINATION ENGINEERING (ZARCHIN PROCESS) LTD." (on the name of founder,
Eng. Alexander Zarhin), later purchased by current shareholders and changed to
the present one on the 1.2.1989.
Converted into a
public limited liability company and registered as such as per file No.
52-004391-0 on the 3.8.1998.
On 19.2.2001
re-converted into a private limited company (though remained with the same
latter registration number).
SHARE CAPITAL
Authorized share
capital NIS 1,350,000.00, divided into -
1,350,000 ordinary shares
of NIS 1.00 each,
of which shares
amounting to NIS 1,270,512.00 were issued.
SHAREHOLDERS
1. ISRAEL CHEMICALS LTD., 50%
(hereinafter ICL), a public limited liability company, whose shares are traded on
the Tel Aviv Stock Exchange. ICL is part of THE ISRAEL CORP. LTD., also a
public limited company, whose shares are traded on the Tel Aviv Stock Exchange,
controlled by the OFER BROS. Group,
2. DELEK INFRASTRUCTURE LTD.,
50%, a fully owned subsidiary of DELEK GROUP LTD., a public limited liability
company whose shares are traded on the Tel Aviv Stock Exchange, controlled by
Itzhak Tshuva.
In 2000, DELEK acquired 50% of subject’s
shares from ICL, for a sum of NIS 59 million.
DIRECTORS
1. Avigdor (Yanush) Ben-Gal,
2. Shlomo Milo,
3. Asaf (Assi) Bartfeld, CEO of DELEK GROUP,
4. Ronal Ben Dov (in trustee),
5. Avi Deuchtman, CFO of ICL,
6. Eli Amit,
7. Yaakov Katz,
8. Natan Dreifus,
9. Allen Gelman.
GENERAL MANAGER
Avshalom
Felber.
BUSINESS
Dealing in
research and development of saline water desalination processes, concentration
and purification of industrial streams, wastewater treatment, heat pumps and
ice/snow machines.
Operating as
designers, manufacturers, installers and marketers of the above fields' allied
equipment, for industrial and domestic applications.
In addition
subject operates the facilities built and provides post-sales maintenance and
support for plants delivered to its customers.
Most sales are for
export. Installed base include some 370 sites in some 40 countries.
Subject erected
some 380 desalination facilities in some 40 countries.
Amongst clients
are the Spanish, Cypriot & Israeli Governments, and corporate clients
including MEKOROTH WATER CO. (Israel), LEGO (Denmark), PG&E, U.S. NAVY,
ENRON, NESTLE, ABB; BECHTEL, JGC (Japan), etc.
Among local
suppliers: ISRAEL SHIPYARDS.
Operating from
rented premises on an area of 3,900 sq. meters in Hamatechet Street, Hasharon Industrial Park, Kadima (near Netanya).
Having
some 140 employees.
MEANS
During the 2nd
half of 2007, it was reported that subject's shareholders are planning a public
offering to subject through the London Stock Exchange towards the end of 2007 (25%,
with the aim of raising US$ 200 million, according to a company value of US$
750 million). Earlier, subject's shareholders received an offer to sell subject
to HUTCHISON concern based on value of US$ 400-600 million). In November it was
announced that the public offering was postponed.
There
are 7 charges for unlimited amounts registered on the company's assets, in
favor of Bank Hapoalim Ltd., Bank Leumi LeIsrael Ltd. and foreign banks and
companies.
Subject
enjoys the financial back of both parent companies, whose main financial
indicators are:
ICL
consolidated B/S totaled US$ 5.266 billion (equity US$ 2.147 billion) as of
31.03.2008. Current market value US$ 18.652 billion.
DELEK
GROUP consolidated B/S totaled NIS 84.449 billion (equity NIS 8.571 billion) as
of 31.03.2008. Current market value US$ 1.551 billion.
ANNUAL SALES
2005 revenues were
NIS 315,000,000, making a gross profit of NIS 70,000,000.
2006 revenues were
NIS 324,000,000, making a gross profit of NIS 113,000,000, and a net profit of
NIS 40,000,000.
2007
revenues were NIS 473,000,000, making a gross profit of NIS 152,000,000, and a
net profit of NIS 87,000,000.
OTHER COMPANIES
Among
subsidiaries:
AMBIENT
TECHNOLOGIES INC., 100%, USA,
IDE CANNARIES SA,
100%, Spain,
LARNAKA WATER
PARTNERS, 95%, Cyprus,
PELAGOS
DESALINATION SERVICES, 100%, Cyprus,
INDIAN
DESALINATION ENGINEERING PVT LTD., 50%, India,
V. I. D.
DESALINATION COMPANY LTD., 50%, Israel,
OTID DESALINATION
PARTNERSHIP, 50%,
WEST GALILEY
DESALINATION COMPANY, 50%,
DETALKE U.T.A.,
20%, Spain,
EDOM (ASHKELON
DESALINATION), 40.4%,
INORSORA DEL
NOROASTA, 20%, Mexico.
And many more
companies in the ICL and DELEK Groups.
BANKERS
Bank
Hapoalim Ltd., Hagalim Branch (No. 584), Herzliya.
Also
working with Bank Leumi Le’Israel Ltd.
CHARACTER AND REPUTATION
Nothing
unfavorable learned.
We
were unable to obtain data from subject's officials. We left messages, which
remain unanswered.
Both
subject’s shareholders are among the leading concerns in Israel.
Subject
is one of the world's largest companies in the sea water desalination field.
Subject
is ISO 9002 certified.
Subject and OCENIA
CO. won jointly the tender of the Cyprus Government in September 1999, for
establishing a water desalination facility and water supply for ten years, in
consideration of US$ 120 million. The facility was constructed in Larnaka,
designed to produce 18 million cubic meters per day (which translates to US$ 15
million per year).
Subject operates
this facility and in January 2008 it won a tender for the expansion of the
facility by 22% in capacity with investment of US$ 8 million. The works
scheduled to be finished by end of 2008, and revenues expected to rise to US$
19 million per year.
In September 2000 subject signed an agreement to sell its premises in
Ra'anana to a real estate company for a sum of US$ 16.5 million.
In July 2001, subject reported it will take part of an international
consortium (20%), which won a tender to build a water desalination facility in
Mexico, in consideration of US$ 200 million. The facility will be handled in a
30 year B.O.T way.
In January 2002 the V.I.D. Group, 50%
controlled by subject, won a huge tender of the Israeli government (B.O.T.
tender), for the erection of a sea water desalination facility in Ashkelon.
Subject's partner is VEOLIA WATER S.A. and ELRAN (D.D.) INFRASTRUCTURE LTD. The
cost of the erection of the facilities estimated at NIS 1 billion. The V.I.D. Group invested NIS 234 million in the project. The project’s
bond bearers invested NIS 480 million and Bank Leumi LeIsrael Ltd. granted NIS
281 million credit line to the project. The agreement for the facility operation is
for 25 years.
The facility produces 100 million cubic meters a year.
In February 2004, it was reported that subject won a US$ 11.5 million
tender to erect a desalination facility in India.
In May 2004, it was reported that subject won a NIS 8 million tender to
provide a desalination facility to a Spanish Power Plant.
In December 2004, it was reported that subject will provide desalination
facilities to SOUTHERN PERU COPPER COMPANY, for a sum of US$ 3.8 million.
In June 2005, it was reported that subject will sell a desalination
facility to ENERSUF of Peru, for a sum of US$ 2.5 million.
In December 2005, it was reported that subject signed 3 contracts to supply
desalination facilities in Spain and Mexico, for a sum of US$ 4.6 million.
In the beginning of 2006, subject won tenders for 3 desalination facilities
in India, in total volume of US$ 70 million.
In June 2007, it was reported that subject will supply a large desalination
facility in China, in a deal valued US$ 119 million. The facility will allow
water for industrial use and purified drinking water to the local population on
one hand, and the salt water extracted will be used for salt production by
Chinese SDIC energy company.
In November 2006 subject, via H2ID subsidiary jointly with the HOUSING
& CONSTRUCTION company, signed an agreement for planning, finance, erection
and operation a seawater desalination facility near Hadera, after winning an
Israeli government tender (B.O.T. tender for 25 years). The facility is designed
to produce
100 million cubic meters a year, aimed to be operational
by 2010. The project estimated cost is NIS 1.5 billion.
In May 2008, subject won a tender for supply 3 desalination facilities for
an Asian client (probably in India), in total volume of cm72 thousands in value
of US$ 80 million.
In August 2008 subject signed a contract for a desalination facility in
Australia for a big industrial client, in volume of € 100 million. It
is part of the huge Sino Iron project by CITIC PACIFIC MINING.
SUMMARY
Good
for trade engagements.
Maximum unsecured credit recommended € 3,000,000.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.42.67 |
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UK Pound |
1 |
Rs.80.92 |
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Euro |
1 |
Rs.63.71 |
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)