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Plasson pulls its London flotation

Nigel Cope
Wednesday 09 October 1996 23:02 BST
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Plasson, Israel's largest plastics company, pulled its flotation on the London stock market yesterday due to the deterioration in the political situation in the Middle East.

The float was to have raised pounds 20m and would have made Plasson the first Israeli company to take a full listing for almost 30 years. It would also have been the first kibbutz-owned company to list in London.

The company's brokers, Societe Generale Strauss Turnbull, said that although early marketing efforts were successful, the outbreak of violence between Israeli and Palestinian forces meant the company would be unable to proceed with its original timetable.

Investors failed to take up pounds 1.9m of the pounds 20m initial public offering, leaving the company just short of the Stock Exchange's minimum float requirement of 25 per cent of the company's shares. The float would have valued the company at around pounds 75m.

The business of Plasson was founded in 1963 by the Kibbutz Ma'agan Michael, and is located on the coast road between Tel Aviv and Haifa. The kibbutz is one of the largest in Israel with a population exceeding 1,300. Plasson is a leading maker of plastic connectors for polythene pipes. Last year it made profits of pounds 4.4m on sales of pounds 52m. It is one of Israel's 100 largest companies.

The kibbutz would have retained a 75 per cent stake in the company after flotation.

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