The Tel Aviv District Court today approved the offer by Burger King Israel franchisee Orgad Holdings Ltd. to acquire Burger Ranch for NIS 25 million, subject to approval of Antitrust Authority director general Ronit Kan by October 31.
During the hearing at the request of Burger Ranch temporary receiver Dr. Shlomo Ness and its temporary liquidators to sell the company to GMR for NIS 17 million, it was learned that Orgad had increased its offer for Burger Ranch from NIS 20 million to NIS 25 million. The new offer changed the initial circumstances and all the parties were able to discuss the new ones.
Orgad has agreed to pay NIS 15 million in cash within three days of the sale's approval by Kan and the balance in eight biannual payments, linked to the Consumer Price Index (CPI).
Judge Uri Goren noted in his decision that Orgad's offer was reasonable, and that he would not have hesitated to approve it today. However, he must honor the statement of the Antitrust Authority, even though he does not agree with its argument as presented by the receivers.
The Antitrust Authority said, among other things, "When the possibility arose that Burger Ranch would be sold under the special circumstances of bankruptcy, it asked the Antitrust Authority for an updated review… The information currently in our possession does not indicate a change in circumstances suggesting a need to change the previous decision to oppose the merger of the two chains."
Judge Goren said that if Kan does not consider that a change in circumstances that was liable to cause the loss of jobs and severe economic distress to 1,500 employees, vendors, and other parties connected with the deal, he did not know what changes in circumstances were.
Published by Globes [online], Israel business news - www.globes-online.com - on September 25, 2008
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