Eduardo Elsztain, the Argentinian Jewish real estate tycoon who has had an ongoing disagreement with Moti Ben Moshe about their equal standing as shareholders in IDB Group, visited Tel Aviv last week, met with IDB executives and participated in a board meeting, according to Globes. Elsztain intends to build his position as controlling shareholder.
Following his trip to Israel, Elsztain went to China to meet with executives of ChemChina, which bought Adama Agricultural solutions. ChemChina now owns 60% of Adama and IDB 40%.
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The controversy between Ben Moshe and Elsztain continues, and the latter is assuming a leadership role. The two men bought IDB last year from Nochi Danker when the company had significant debt problems. Both men bought out IDB or $180 million and have promised $100 million this year. The trouble began when Ben Moshe demanded to purchase half the shares Elsztain bought at the price he bought them, and to have the right to own shares distributed by Elsztain to other divisions of IDB. Elsztain currently has more than half the shares and has more members on IDB’s board than Ben Moshe does.
Extra said, “The rights issue and the procedures supporting it were a violation of the shareholders agreement and unacceptable conduct and in bad faith. This follows the violation of the shareholders agreement by [Elsztain’s company] Dolphin even before the rights issue.”