Belgian synthetic-diamond company Fenix will buy Israel’s Lusix for $4 million after a Japanese bidder pulled out, according to a local news report.
EDP, which had offered to purchase the Israeli lab-grown producer for $2.6 million, withdrew because of the escalation of the war in the region and as it had become clear that the highest bidder would win, Israeli newspaper Calcalist reported Tuesday. Since the withdrawal, Fenix — owned by India’s Parikh family — and PD Holdings both entered the race with bids of $4 million, the report said.
While both proposals offered the same price, the differences were in the employment commitments and payment schedules, according to Judge Irit Weinberg Nutovitz at the Central District Court in Lod, Calcalist reported.
The Fenix offer gained support from Lusix’s employees, the Commissioner of Insolvency Proceedings, and the creditors who own the assets leased to Lusix, the report said. Fenix has committed to retaining 13 employees for at least a year and a further 10 for a minimum of three months, it continued.
Fenix has family connections with Antwerp-based natural-diamond company Diarough. Rapaport News was not able to obtain comment from Fenix or PD Holdings at press time.
Lusix chief technology officer Yossi Yayon confirmed the court decision to Rapaport News but declined to comment further.
Founded by Israeli entrepreneur Benny Landa in 2016, Lusix raised more than $150 million in funding from investors including LVMH Luxury Ventures. However, a drop in synthetic-diamond prices placed the company under financial pressure. In August, it sought protection from creditors after reportedly amassing debts of $28 million.
News that Fenix had bid for Lusix was first reported by JCK last month.
Image: A Lusix rough lab-grown diamond. (Lusix)
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