MIRA INFORM REPORT

 

 

Report No. :

319764

Report Date :

04.05.2015

 

IDENTIFICATION DETAILS

 

Name :

ROTEM AMFERT NEGEV LTD.

 

 

Formerly Known As :

ROTEM FERTILIZERS LTD.,

 

 

Registered Office :

P.O. Box 75, Beer Sheva (8410001), P.O. Box 187, Yeruham (8055101), 1 Kroitzer Street, "Ashlag" (Potash) House, Beer Sheva 8489414

 

 

Country :

Israel

 

 

Date of Incorporation :

09.10.1977

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturing and Marketing a comprehensive range of products based on phosphate rock as raw material and leading to downstream derivatives including phosphoric acids, fertilizers, specialty chemicals and phosphate salts.

 

 

No. of Employees :

120

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Israel

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

ISRAEL - ECONOMIC OVERVIEW

 

Israel has a technologically advanced market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. Between 2004 and 2013, growth averaged nearly 5% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals, following years of prudent fiscal policy and a resilient banking sector. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Slowing demand domestically and internationally and reduced investment due to uncertainties caused by the Gaza conflict in summer 2014 have reduced GDP growth to about 2% during 2014. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds this past decade. The massive Leviathan field is expected to come online no sooner than 2017, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and a 0.5% boost in 2014. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. Israel's income inequality and poverty rates are among the highest of OECD countries and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. The government formed committees and has started splitting up the oligopolies to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. Over the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultra-orthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only 9% of the workforce, with the rest employed in manufacturing and services - sectors which face downward wage pressures from global competition.

 

Source : CIA

 

Company Name and Address      

 

ROTEM AMFERT NEGEV LTD.

(Also known as: ROTEM FERTILIZERS LTD.)

Telephone    972 8 646 55 51; 646 53 44

Fax              972 8 646 55 09

E-mail:         info@iclfertilizers.com

P.O. Box 75, Beer Sheva (8410001)

P.O. Box 187, Yeruham (8055101)

1 Kroitzer Street, "Ashlag" (Potash) House

BEER SHEVA 8489414 ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 52-003088-3 on the 09.10.1977.

 

As from 01.08.1989 business activities of AMSTERDAM FERTILIZERS (AMFERT), a Dutch fertilizers plant, were merged into subject.

 

On the 09.03.1992, NEGEV PHOSPHATES LTD. was merged into subject.

 

NEGEV PHOSPHATES was incorporated as a public limited company in 1971, taking over business activities of a firm originally established in 1952.

 

Subject was originally registered under the name ROTEM FERTILIZERS LTD., which changed to the present name on the 07.02.1995.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 58,324,664.00, divided into -

116,649,327 ordinary shares (111,980,876 shares issued), 1 special share (issued), all of NIS 0.50 each, of which shares amounting to NIS 55,990,438.50 were issued.

 

 

SHAREHOLDERS

 

Subject is a fully owned by ISRAEL CHEMICALS LTD. (ICL), a public limited company whose shares are traded on the Tel Aviv Stock Exchange (TASE) and the New York Stock Exchange (NYSE:ICL). ICL is controlled (46.2%) by ISRAEL CORPORATION LTD., also publicly traded on TASE, controlled (some 53%) by OFER Group, owned chiefly by Idan Ofer (other shareholders in OFER Group are Udi Angel and members of Ofer family). BANK LEUMI LE'ISRAEL LTD. holds 11% in ISRAEL CORP..

 

POTASH CORPORATION OF SASKATCHEWAN (PCS) holds 13.85% of ICL The State of Israel holds one single special share in subject (given the fact subject holds rights on Israel national resource).

 

 

DIRECTORS

 

1.      Avi Doitchman,

2.      Asher Grinbaum,

3.      Eli Amit.

 

 

MANAGEMENT

 

Stefan Borgas, CEO of ICL, Nissim Adar, General Manager of subject and ICL FERTILIZERS.

 

 

BUSINESS

 

Subject is part of ICL FERTILIZERS Division in the ICL Group, which is the largest division in ICL (some 55% of total sales in 2014).

 

An integrated, multinational phosphate group manufacturing and marketing a comprehensive range of products based on phosphate rock as raw material and leading to downstream derivatives including phosphoric acids, fertilizers, specialty chemicals and phosphate salts.

 

Annual phosphate production amount to 6.5 million tons, based on phosphate rock mined in the Negev Desert, in 4 different sites, based on long term licenses from the State of Israel (one valid till 2013, now extended, and 2 till 2021 and up), paying royalties in return.

 

Some 95% of sales are for export, mainly to Europe, Brazil, India and China.

 

Producing raw materials which are also supplied to sister division ICL PREFORMANCE PRODUCTS, which produces phosphate-based products for various applications, including food additives.

 

Among customers: SINOCHEM of China.

 

Among local suppliers: DELTA ELKON, RAW MATERIALS IMPORT & EXPORT, L Y A HIDRAULICS & PNEUMATIC, MABAT 3D TECH., A.Z. INDUSTRIES, ELKAYAM INDUSTREIS, SUPERGUM (1983), S.K. MKM ENG., etc.

 

Also assisted by DORMEX, which represents subject in several foreign markets.

 

Operating from mining and manufacturing plants in Rotem Field (comprises of 8 large facilities), near the Dead Sea, Hatrurim Field and in Zafir Field (Oron Zin) in the Negev Desert. Headoffice (of ICL FERTILIZERS) in Potash House, 1 Kroitzer Street, and further offices in in 3 Shazar Ave., both in Beer Sheva. Also operating from offices in Yeruham in the Negev Desert. ICL headquarters situated in 23 Osvaldo Aranya Street, Millenium Tower, Tel Aviv.

 

Also having fertilizers plants in Holland, Germany, Belgium and Spain, phosphate-based feed additives plant in Turkey, and offices worldwide.

 

Having 1,100 - 1,200 employees in subject. There are 12,457 employees in ICL Group (of which 4,940 employees in Israel), of which 5,995 employees in ICL FERTILIZERS Division. Recent reports say that as part of its streamlining, ICL is going dismiss several hundred employees, incl. 120 employees in subject.

 

 

MEANS

 

Financial data is included in the consolidated B/S of parent company, ISRAEL CHEMICALS LTD., which shows:

 

                                                                                                 US$ (thousands)

ASSETS                                                                            31.12.2013                 31.12.2014

Current assets:

     Cash and cash equivalents                                                   188,340                   130,831

     Investments and short term deposits                                       96,388                   116,492

     Customers                                                                        1,057,028                1,039,146

     Other receivables and assets                                                291,587                   518,472

     Stock                                                                                1,408,297                1,335,098

                                                                                             3,041,640                3,140,039

Non-current assets:

     Investments and other non-current assets                              454,431                   477,756

     Fixed assets                                                                     3,686,240                3,926,873

     Intangible assets                                                                  791,174                   802,920

                                                                                             4,931,845                5,207,549

                                                                                             7,973,485                8,347,588

                                                                                           ========               ========

 

LIABILITIES

Current liabilities                                                                     1,960,041                2,002,852

Non-current liabilities                                                              2,334,770                3,344,510

Equity                                                                                    3,678,674                3,000,226

                                                                                             7,973,485                8,347,588

                                                                                           ========               ========

 

 

ICL’s current market value US$ 9,000 million.

 

Subject is an “Approved Enterprise” and as such enjoys tax benefits and State incentives.

 

According to the financial statements of parent ICL, total assets attributed to the Phosphate segment (practically subject and subsidiaries in the phosphate area) as of 31.12.2014 totaled US$ 1,669 million (US$ 1,660 million as of 31.12.2013).

 

In November 2013 ICL raised US$ 275 million in private placemenst of bonds.

 

In September 2014 ICL published a prospectus to the SEC, listing its shares on the NYSE, raising US$ 550 million, and further US$ 800 million raised in a private placement to institutional investors by early December 2014.

 

In March 2015, ICL sined an agreement with a group of 11 international banks for a revolving credit facility in a total amount of US$ 1,705 million.

 

There are 2 charges (placed 2005 and 2010) for unlimited amounts registered on the company's assets, in favor of CRYSTAL PURCHASING LTD.

 

 

REVENUES

 

Subject pays royalties to the State of Israel as part of the rights given for mineral production from the Negev Desert: paid US$ 3 million, US$ 4 million & US$ 6 million, in 2014, 2013 & 2012, respectively.

Subject ended 2011 with a net profit of US$ 316.1 million.

Subject ended 2012 with a net profit of US$ 234.4 million.

Subject ended 2013 with a net profit of US$ 234.7 million.

 

Phosphate & Fertilizers sales by ICL FERTILIZERS Div. from ICL statements, including by subject (chiefly) and local & foreign subsidiaries, were:

 

(in US$, Million)                                           2012              2013          2014

Sales                                                           1,727             1,754                1,678

Gross profit                                                    462                424                   n/a

Operating profit                                               162                  79                   133

 

Subject's reported solo 2010 sales for export were US$ 611 million.

Subject's reported solo 2011 sales for export were US$ 800 million.

Subject's reported solo 2012 sales for export were US$ 753 million.

Later sales figures unavailable.

 

 

                                                                                ISRAEL CHEMICALS LTD.

                                                                        Consolidated Statement of Income

                                                                                         US$ (thousands)

                                                                                         Year ended 31.12

                                                                             2012                2013                   2014

Sales                                                                6,471,433            6,271,542            6,110,710

 

Gross profit                                                      2,711,198            2,409,970            2,196,137

 

Operating income                                              1,553,632            1,101,366              757,670

 

Income before income taxes                              1,519,293            1,100,196              632,254

 

Net income                                                       1,301,732              820,173              466,102

                                                                      ========          ========          ========

 

 

OTHER COMPANIES

 

Subject’s owned subsidiaries (main ones, among others):

NEGEV STAR LTD.

EDOM MINERALS & DEVELOPMENT LTD.

EUROCHIL HOLDINGS B.V. (ICL FERTILIZERS EUROPE), Holland, marketing arm in Europe, holds ICL FI POTASH B.V. and many others subsidiaries.

AMSTERDAM FERTILIZERS B.V., Holland, owns ICL FERTILIZERS EUROPE CV, ROTEM TURKEY, AMSTERDAM FERTILIZERS DEUTSCHLAND OHG (AMFERT GERMANY), ICL FERTILIZERS DEUTSCHLAND,

EVERRIS INTERNATIONAL B.V., Holland,

P.M. CHEMICALS SRL, Italy,

ICL ASIA LTD., Hong Kong,

ZUARI ROTEM SPECIALTY FERTILIZERS, 50%, India.

ROTEM BKG LLC, USA,

ROTEM DO BRAZIL LTDA, ICL BRAZIL LTDA, both of Brazil,

ICL FERTILIZERS (INDIA) PRIVATE LIMITED, India,

ROTEM MANUFACTURING PLC, Ethiopia.

 

ISRAEL CHEMICALS LTD. (ICL), parent holding company.

 

Subject is part of ICL FERTILIZERS Division which includes 4 main companies (each with subsidiaries), subject being one of the 4, the 3 others are:

FERTILIZERS AND CHEMICALS LTD., 100% owned by subject, manufacturers, importers and marketers of fertilizers and chemicals, mainly for the agriculture sector, e.g. nitrogen and phosphorus fertilizers, industrial chemicals, water treatment, gases, paint dyers, solvents, feed additives, etc.

MIFALEI TOVALA LTD., land transportation, bulk transportation.

DEAD SEA WORKS LTD., producers, manufacturers, exporters and marketers of potash and other chemicals from the Dead Sea. Holds 100%, among others, in ICL IBERIA SCS, GRUPO EMPRESARIAL AGROMEDITERRANO S.A, TRAFICO D MARCINANCE S.A., IBER POTASH S.A., all of Spain, W.H.M.S. INVESTMENT ESTABLISHMENT (Liechtenstein), CLEAVLAND POTASH LIMITED (CLP) and ICL IBERIA LTD., both of the U.K., ASHLEY CHEMICALS (HOLLAND) B.V., POTASH TECHNOLOGY INDUSTRIES LTD.

 

Other companies part of the ICL Group, among many others:

 

ICL Industrial Products (ICL-IP) Div.:

DEAD SEA BROMINE COMPANY LTD., heading the DEAD SEA BROMINE GROUP (known as “DSBG”). Mainly via wholly-owned subsidiary BROMINE COMPOUNDS LTD., operating as manufacturers and marketers of bromine compounds and other industrial chemicals based on minerals extracted from the Dead Sea. Among subsidiaries:

BROMINE COMPOUNDS MARKETING (2002) LTD.,

 

DEAD SEA MAGNESIUM LTD., producers, manufacturers, exporters, marketers of magnesium and related products, producing magnesium from the Dead Sea.

TETRABROM TECHNOLOGIES LTD.,

CHEMADA FINE CHEMICALS LTD., 26%,

TAMI IMI INSTITUTE FOR RESEARCH & DEVELOPMENT LTD.,

DEAD SEA PRICLASE FUSED PRODUCTS, General Partnership,

ICL-IP AMERICA INC., USA, owns HY YIELD BROMINE, 80%, USA.

ICL-IP JAPAN LTD., Japan,

LANDCAM LIMITED, South Africa,

BROMINE & CHEMICALS LIMITED, UK,

EUROCLEARON B.V., the Netherlands, owns CLEARON CORP., USA,

ICL-IP EUROPE B.V., the Netherlands, holds several subsidiaries, including BROMOCHEMIE HOLDINGS B.V., ICL IP TERNEUZEN B.V., SINOBROM (75%, China), LIANYONGANG DEAD SEA BROMINE COMPOUNDS LTD (60%, China), BROMISA INDUSTRIAL E COMERCIAL LTDA (Brazil), etc.

ROTEM AMFERT NEGEV B.V., Holland.

ICL Performance Products Div.:

ICL PERFORMANCE PRODUCTS INC.,

B.K. GIULINI GmbH, a subsidiary in Germany,

BKG PURIPHOS B.V.,

PEKAFERT B.V., holds EUROCIL LUXEMBOURG,

ASTARIS INC. of the U.S.A. and Brazil,

ICL NORTH AMERICA INC, USA.

Others:

I.D.E. TECHNOLOGIES LTD., 50%, desalination facilities and water treatment, ICL FINANCE B.V., The Netherlands, ICL FINANCE INC., USA, ICL FINANCE  & ISSUING LTD., ICL FINE CHEMICALS LTD., TWINCAP FOERSAEKRINGS AB (Sweden), HOYERMANN CHEMIE GMBH (Germany), and many others, including companies in ICL Group and ISRAEL CORP. concern.

 

ISRAEL CORP. LTD. (IC), a holding company, current market value US$ 2,787 million. Its main holding, besides ICL, is 37.1% in OIL REFINERIES LTD., oil refiners, also publicly traded on TASE, current market value US$ 1,115 million.

 

 

BANKERS

 

Bank Leumi Le’Israel Ltd., Tel Aviv Central Branch (No. 800), Tel Aviv.

Bank Hapoalim Ltd., Beer Sheva Branch (No. 631), Beer Sheva.

 

 

CHARACTER AND REPUTATION

 

There are several lawsuits against subject, mainly due to environmental issues. None of the lawsuits seem to be significant. ICL has been investing tens of NIS millions in recent years in environmental protection ends.

 

Apart from that and other issues below, some of which are related to subject also as part of the Group, nothing unfavorable learned in the legal aspect.

 

In the recent periods, ICL Group has been facing pressures from various aspects, including harsh competition and slowdown in global market and drop in prices in the potash and fertilizers fields, elevation of royaltees on State resources by the Israeli Government, and others.

 

Due to a heavy losses of Maroccoean phosphate manufacturer OCP, which controlled the world market (70%), prices of the mineral plunged.

 

All these, some detailed below, forces the Group to go through streamlining measeurs, including layoffs –repotedly 11% of its local manpower, which in turn, put further pressure from the Labor Union aspect. In January 2014 the Labor Union declared labor dispute in ICL's 6 local southern plants, including subject's plants, and in March 2014 subject's workers started a strike, which caused damages to ICL in volume of US$15 million. The labor dispute in subject ended in settlements that included retirement of 115 of subject's employees (in generous terms). The strikes in sister companies continues to-date.

 

ICL is a multi-national concern, among the world's leading suppliers of minerals and one of the largest industrial concerns in Israel. It is ranked as the world's 6th largest potash manufacturer (No. 2 in Western Europe) and the world's largest producer of PK fertilizers (compound of potash and phosphate fertilizers), and leading producer of specialty phosphates based on purified phosphoric acid. Its subsidiary DSBG is considered of world leading company in the bromine market, with estimated production of 40% of the total elementary bromine production in the world and lead in the bromine-based flame retardant products market.

 

DEAD SEA WORKS was declared monopoly in Israel for part of its products.

 

OFER Group, which ISRAEL CORP. is part of, is a veteran holding company, one the largest and influential groups in the Israeli market, operating worldwide also in the fields of energy, shipping, high tech & electronics and real estate.

 

As part of strategic move by ISRAEL CORP. in the end of September 2014 it completed a sale offer for some 6% of ICL shares, some half in direct sale (public offering, listing ICL's shares on the NYSE) and the rest in options given, in consideration of over US$ 500 million. This move was designed to boost the value of the core businesses and lower its financial debt, thus attract a broader range of investors by a spin-off into 2, leaving ICL and ORL in the Group, and the other under newly established KENON HOLDINGS LTD.

 

The move was completed in January 2015 and KENON's shares listed to trade via NYSE and via TASE. KENON has holdings in the fields of energy (IC POWER), automobiles (QOROS), shipping (ZIM) and hi-tech (TOWER-JAZZ).

 

Canadian PCS, publicly traded on NYSE and Toronto (TSX: POT, NYSE: POT) with market value of US$ 27.13 billion, which holds some 14% in ICL, is the world’s largest potash producer (20% market share). In October 2012 ISRAEL CORP. held negotiations with PCS on a merger deal, where PCS will take over full ownership of ICL in a shares swap deal. Such a transaction requires the State of Israel authorization, which holds a golden share in ICL that acquires it veto rights, as subject has concession to Israel's natural resources. After the Minister of Finance expressed his resistance to such transaction, in April 2013 PCS announced it withdraws its intention to pursuit with the merger at this time.

 

Subject is ISO 9001:2000 certified.

 

A major aspect for the concerns of ICL is the matter of higher payments of royalties to the State for excavating and selling minerals, considered as natural resources. In December 2010 the Israeli Parliament voted to cancel ICL Group's special tax benefits (NIS 2.3 billion in 2007-2011), including for phosphate (was enjoying both from low royalties rate and tax benefits). The State filed a lawsuit claiming ICL has to compensate the State for unpaid royalties of US$ 265 million in years 2000-2009, which went to a long mediation process. In October 2014 a governmental committee published its conclusions, which include elevating the royalties to 5% rate, and the tax on "extra" profits, ICL to pay for its IP products.

ICL fears that higher royalties will erode their profitability further, estimating that implementing the current offered royalties scheme by the government would have lessen ICL's profits in 2013 –of US$ 820 million- by US$ 160 million.

 

In parallel, ICL has been also facing harsh competition and slowdown in global market and drop in prices in its main products in the potash and fertilizers fields. In view of the above, ICL decided to freeze further strategic investments in Israel in volume of US$ 750 million (and on the other hand invest in overseas operations and sites), make structural changes and streamlining in the Group's operations and more, all which will bring to saves of US$ 350 million by 2016.

 

In that framework, ICL also contemplates closing down its Magnesia plant, cutting down in the BROMINE COMPOUNDS activities, and selling non-core activities. ICL decided on investing in overseas operations and sites, including hundreds millions in ventures for phosphate production and products in China.

 

Subject has been operating to obtain permits to develop a large field in the Negev Desert which contains large reserves of the phosphate rock. As the land is situated only few km from the town of Arad (and not far from one of subject’s plants) there is a strong resistance from citizens of Arad, and the matter has been under revision by Government authorities. Subject received excavation permit for 'Brir Field' (part of a larger Zohar Field), with large with reserves potential estimated at least of US$ 25 billion (250-500 tons), yet prospects remain vague as to the development of this field. ICL estimated that it will have to cut 10% of subjewct's workforce if it would not operate Brir Field (though this is also part of ICL way to pressure the decision makers).

 

In view of the recent public debate on the above royalties and permits issues, and uncertainties, ICL launched a strategic plan to become less dependent on potash and Israel's natural resources and seek global resources. In that aspect, ICL signed in mid 2013 a memorandum for cooperation with DUC GIANG in Vietnam for erection and operation of a phosphate excavation project, and in December 2014 it entered into a joint venture (50%) in the erection of phosphate mining and process plant in China with the partner YUNNAN YUNTIANHUA,  the 2nd largest chemicals manufacturer in China and the 3rd largest phosphate manufacturer in the world, with investment of US$ 452 million (incl. 15% stake in YUNNAN). The mine will produce 2.5 tons of phosphate p/year in the next 30 years.

 

In 1994 the Group purchased PENNGAR in France, manufacturer of detergents for the dairy products industry.

In 1996, ICL German subsidiary GIULINI acquired BK LADENBURG from HOECHST for US$ 60 million and in 1997 the two merged.

 

In 2000, subject aqcuired OPAL, a feed phosphate producer in Turkey and started operating under the name of ROTEM TURKEY.

 

In 2005 ICL acquired ASTARTIS, producers of phosphate-based products of the USA and Brazil, for a sum of US$ 255 million.

 

 

In 2007 ICL started a joint venture in India with a local ZUARI (of BIRLA CHEMICALS), designed to penetrate the dissolvable fertilizers market in India. The venture comprises of a manufacturing plant in India and marketing activity. In August 2011 ICL announced on the expansion of its manufacturing capacity in India, with the erection of 2 plants with cooperation of ZUARI.

 

ICL Group's plants started to benefit from the shift of the Group's use in natural gas as energy source (replacing the ISRAEL ELECTRICITY CORP. conventional electricity power).

 

In June 2010 ICL signed transportation contracts with ISRAEL RAILWAYS for cargo from the Dead Sea and Negev Desert until 2021, in volume of NIS 1 billion.

 

In June 2010 it was reported that in view of the global economic climate and credit suffocation, ICL started to use the credit insurance facilities of State-owned ASHRA – THE ISRAEL EXPORT INSURANCE CORP. LTD. (jointly with private credit insurance company ICIC) for subject’s (and sister company DEAD SEA WORKS) short-term deals with Brazil in value of tens of US$ millions.

 

During 2011 ICL acquired: EVERRIS (formerly SCOTTS GLOBAL), for US$ 270 million; Spain's largest specialty chemical manufacturer FUENTES MENDEA, for US$ 122 million; Mexican COSMOCEL QUIMICA, food additives and specialty chemicals manufacturers, for US$ 35 million; The activities of American HALOX, a global leader in phosphate-based products for the colors and coatings industry in the building field, for several tens US$ million; 50% (on top of 50% already held) of Belgian fertilizer components maker NUTRISI HOLDINGS, which holds 50% in NU3, the world's largest manufacturer of soluble NPK.

 

ICL also bought CHEMTURA’s 50% share in their TETRABROM TECHNOLOGIES bromine compounds joint venture, the world's largest flame retardants manufacturer, becoming the sole owner of the operation.

 

In February 2013 ICL acquired Knapsack plant of THERMPHOS of Germany (from its Receiver), manufacturers of phosphate, for US$ 50 million.

 

In end of 2013 subject signed an agreement to buy German HAGESUD's activities (food additives manufacturing) for estimated sum of US$ 60-70 million.

 

In December 2014, ICL acquired 100% of FOSBRASIL (increasing our holdings from 44.25% to 100%, estimated invested of US$ 65 million), the leading manufacturer in Latin America of purified phosphoric acid for the food and special fertilizer markets and a manufacturer of secondary products based on phosphates and special fertilizers.

 

 

SUMMARY

 

Good for trade engagements.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.58

UK Pound

1

Rs.97.99

Euro

1

Rs.70.53

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIT

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

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

 

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

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

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

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.