Amiad Water Systems Ltd Related Party Transactions (5087T)
July 20 2020 - 6:06AM
UK Regulatory
TIDMAFS
RNS Number : 5087T
Amiad Water Systems Ltd
20 July 2020
20 July 2020
Amiad Water Systems Ltd.
("Amiad" or the "Company")
Related Party Transactions
Amiad (AIM: AFS), a leading global producer of water treatment
and filtration solutions, announces that, further to the Company's
circular to shareholders dated 27 February 2020, it has entered
into formalised commercial framework agreements (the "Agreements")
in order to renew its longstanding commercial relationship with two
entities affiliated to FIMI Opportunity Funds ("FIMI"), being
Polyram Plastic Industries Ltd ("Polyram") and Rivulis Irrigation
Ltd ("Rivulis").
Polyram is the Company's largest plastic raw materials supplier,
with 2019 raw material purchases valued at approximately $2.5m. The
Company orders plastic materials from time to time via purchase
orders throughout the year as required. Rivulis is a customer of
the Company that from time to time acquires the Company's products
for its irrigation activity based on agreed discount rates, with
average annual sales of $0.5m.
The Agreements are being entered into in order to formalise the
existing arrangements. Each of the Agreements has a three-year
term, contain no unusual features and are in line with standard
market practice.
In relation to Polyram, the process by which purchases will be
made are being formalised, with prices to be agreed in advance
between Amiad and Polyram based on prevalent market prices. The
agreement does not require Amiad to purchase any minimum quantities
from Polyram and Amiad remains free to purchase products from other
suppliers.
In relation to Rivulis, the process by which sales and payment
terms will be made are being formalised. Sales to Rivulis will be
on standard agreed discount rates from the Company's standard price
list, in a manner similar to Amiad's other customers, but there is
no purchase obligation requirement on Rivulis.
As FIMI is a substantial shareholder (as defined in the AIM
Rules) of the Company, the Agreements are classified as related
party transactions under the AIM Rules. The Board considers, having
consulted with the Company's Nominated Adviser, Stifel Nicolaus
Europe Limited, that the terms of the Agreements are fair and
reasonable insofar as the Company's shareholders are concerned. In
accordance with Israeli Companies Law, the Agreements received the
approval of the Board of Amiad and the Audit Committee of the
Board, respectively.
Enquiries
Amiad Water Systems Ltd.
Dori Ivzori, Chief Executive
Officer
Avishay Afriat, Chief Financial
Officer +972 4 690 9500
-----------------
Stifel Nicolaus Europe Ltd.
-----------------
Stewart Wallace, Ben Maddison +44 20 7710 7600
-----------------
Luther Pendragon
-----------------
Harry Chathli, Claire Norbury +44 20 7618 9100
-----------------
About Amiad
Amiad Water Systems (AIM: AFS) is a leading global producer of
automatic, self-cleaning water treatment and filtration products
and systems. Through its engineering skills and ability to
innovate, Amiad provides cost-effective "green" solutions for
irrigation and industrial purposes. In these markets, its unique
and high-quality products are being integrated into the core of
systems for filtration and water treatment, micro irrigation and
membrane protection, wastewater and potable water treatment,
cooling systems and sea water filtration. Headquartered in Israel,
Amiad provides these solutions through ten subsidiaries and a
comprehensive network of distributors to customers in more than 80
countries.
FIMI Opportunity Funds, the leading private equity investor in
Israel, is a controlling shareholder of Amiad, with an interest in
39.6% of the Company's outstanding issued share capital.
For additional information or product details, please visit
www.amiad.com .
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END
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