THE COURT – THE DISPUTE BETWEEN HUTCHISON AND IDE GOES TO ARBITRATION (CALCALIST)The arbitrator is attorney Gabi Moyal Maor. The dispute pertains to the activation of Hutchison’s first right of refusal for the purchase of IDE shares in the Sorek Desalination Plant’s operating company
14.08.19 | Golan Hazani
The Tel Aviv District Court recently determined, with the consent of the parties, that the dispute between the desalination engineering company (IDE) and Dan Capital over the sale of IDE’s holdings in the Sorek Desalination Plant’s operating company. It will be transferred for arbitration proceedings before attorney Gabi Moyal Maor of the Hamburger Evrone & Co. Law Firm.
Hutchison Water, which holds 49% of the shares in the Sorek Desalination Plant’s operating company, filed a petition this February for the appointment of an arbitrator to rule in the matter of the dispute between IDE and Hutchison Water with regard to the activation of its first right of refusal for the purchase of IDE’s shares in the plant’s operation company - Sorek Operation and Maintenance.
Hutchison, which in 2018 sold IDE its shares (49%) in the desalination plant’s concessionaire company, claims that on December 26, 2018, IDE sent it a letter notifying that it had received an offer from Dan Capital regarding its intent to purchase its holdings in the Sorek Plant’s operations company, with an attached sales agreement.
Hutchison claims that the information it received from IDE does not allow it to reach an informed decision on whether to exercise its right of refusal, because it does not include the information regarding the method used to calculate the price, the system of agreements between IDE and Dan Capital and the veracity of the price.
The court ruled that the arbitration will not discuss the actual sales arrangement, which will not change, rather only the financial disputes between the parties related to the deal.