Solbar Industries (TASE: SLBR) will become the next project of Ishay Davidi and Meir Shamir. Solbar’s current controlling shareholder, Kibbutz Hatzor, today signed a contract transferring control of the soy products maker to First Israel Turnover Enterprise (FITE) fund and Mivtach Shamir Holdings Ltd. (TASE:MISH).
Under the deal, longstanding business collaborators, Mivtach Shamir controlling shareholder Meir Shamir and FITE controlling shareholder Ishay Davidi, will acquire 51% of Solbar for NIS 80 million. FITE, run by CEO Roy Machnes, will invest NIS 50 million for 32% of Solbar, and Mivtach Shamir will invest NIS 30 million for 19% of the company. FITE and Mivtach Shamir will also receive two million options at a strike price of NIS 10, which could boost their holding in Solbar to 55%.
FITE and Mivtach Shamir will set up a joint company that will hold the controlling interest in Solbar. “Globes” reported earlier that today was the deadline to close the deal.
Kibbutz Hatzor was forced to adjust the original agreement signed with FITE and Mivtach Shamir. Under the original agreement, FITE was to acquire 47.5% of Solbar for NIS 80 million, but, as “Globes” first reported, Davidi and his partners demanded better terms because Solbar lost NIS 14.5 million in the second quarter, NIS 10 million more than Kibbutz Hatzor’s earlier prediction that was the basis for the sale.
Published by Globes [online], Israel business news - www.globes.co.il - on September 14, 2006
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