Hadera Paper to pay $20.77 mln for Carmel stake

TEL AVIV, July 8 (Reuters) - Hadera Paper Ltd (AIP.A) AIP.TA said on Tuesday its board authorised the company's management to purchase 53 percent of Carmel Container Systems for $20.77 million.

Hadera Paper, which on Monday changed its name from American Israeli Paper Mills Ltd, said last week it was in negotiations to acquire the 49.5 percent stake owned by Carmel's main shareholder.

It is now seeking to buy out additional shareholders to bring its stake to 89.3 percent of Carmel from a current 36 percent.

The 49.5 percent stake is held by the Kraft Group, the holding company of the Kraft family's interests, which include the New England Patriots football team.

"There can be no assurance that a binding agreement can be reached, but if a binding agreement will be signed, the completion of the transaction is conditioned upon the receiving of the approvals required by law, including the approval of the Israeli Antitrust Authority," the Israeli paper company said.

Carmel had revenues of 471 million shekels ($144 million) in 2007.

($1=3.265 shekels)

(Reporting by Tova Cohen; Editing by Erica Billingham)