Authorization

Opinion Regarding Valuation of Fixed Assets of ICL Subsidiaries in Israel

TEL AVIV, Israel, December 27, 2018 /PRNewswire/ --ICL (NYSE & TASE: ICL), a leading global specialty minerals and specialty chemicals company, today announced that it has received an opinion of an independent appraiser (the "Opinion"), regarding the fair value and the remaining useful life of the fixed assets, including equipment, facilities and infrastructures ("Value of Fixed Assets"), of the subsidiaries Dead Sea Works, Dead Sea Bromine and Dead Sea Magnesium in Israel (the "Subsidiaries"). The Opinion was prepared, among other things, for the purpose of preparation of the Subsidiaries' financial statements for 2016 and onward, which serve as a basis for the reports filed pursuant to the provisions of the Taxation of Natural Resources Law, that became effective on January 1, 2016, with respect to minerals other than potash, and on January 1, 2017, with respect to the potash mineral (the "Taxation of Natural Resources Law"). There is no resulting change in the Company's consolidated financial statements.The Opinion was prepared according to one of the methods in International Accounting Standards IAS 16 and IFRS 13, which apply to the Company and to the Subsidiaries and which are generally accepted accounting principles in Israel for the measurement of fixed assets. The Value of Fixed Assets provided in the Opinion is estimated at approx. $6 billion as at December 31, 2015, and at December 31, 2016. The majority of the fixed assets and their fair value, are located, as at the date of the va;uation, with the concession area. However, they also include fixed assets owned by the Subsidiaries and located outside the area of the Dead Sea concession, as well as fixed assets that are not attached to the ground and therefore do not fall within the definition of "tangible fixed assets" as pertains to the Dead Sea Concession Law (the "Concession Law").The Company believes that the applied replacement cost methodology used for estimating the fair value in the Opinion, in accordance with International Accounting Standards, also coincides with the methodology mentioned in the Concession Law for future valuation of the tangible fixed assets that will exist upon termination of the concession period (the "Concession Assets"). However, other interpretations regarding the manner of implementation of the Concession Law's provisions respecting the methodology for valuation of Concession Assets are possible, and hence, the estimated Value of Fixed Assets determined with respect to the Concession Law could also materially differ from the value as provided in the said Opinion, even with respect to the same assets and to the same dates. There is no certainty as to the manner of interpretation of the provisions of the Concession Law in this context as will be adopted in a legal proceeding, to the extent such proceeding would occur. AIt is expected that the value of the fixed assets at the date of termination of the concession will change as time passes and as a result of purchase and disposal of assets from the list of assets that will comprise the fixed assets.The Opinion regarding the fair value, that was provided for the preparation of the Subsidiaries' financial statements, as aforesaid, is based on separate assumptions and estimates in relation to thousands of items of equipment and facilities used by the Subsidiaries and does not constitute a valuation of the business and operations of the Company or the subsidiaries. A AAbout ICL AICL is a global specialty minerals and chemicals company operating bromine, potash and phosphate mineral value chains in a unique, integrated business model. ICL extracts raw materials from well-positioned mineral assets and utilizes technology and industrial know-how to add value for customers in key agricultural and industrial markets worldwide. ICL focuses on strengthening leadership positions in all of its core value chains. It also plans to strengthen and diversify its offerings of innovative agro solutions by leveraging ICL's existing capabilities and agronomic know-how, as well as the Israeli technological ecosystem. ICL's operations are divided into four business divisions: Industrial Products (bromine value chain and complementary business); Potash; Phosphate Solutions (P2O5 Chain); and Innovative Agro Solutions. AICL shares are dual-listed on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE and TASE: ICL). The company employs over 11,000 people worldwide, and its 2017 revenues totaled $5.4 billion. For more information, please visit the Company's website at .
INVESTOR RELATIONS CONTACT
Limor GruberA
Head of Investor RelationsAAA
+972-3-684-4471AAAA

PRESS CONTACTAAAAAAAAAAAAAAAAAAAAAAAAAAA
Maya AvishaiAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA
Head of Global External CommunicationsAAAAAAAA
+972-3-684-4477
AAAAAASOURCE ICL
See also:
Leave a comment
News
  • Latest
  • Read
  • Commented
Calendar Content
«     2020    »
 12345
6789101112
13141516171819
20212223242526
27282930