Vita Galilee Fruit deal for NIS 105m

Vita's share tripled on the news of its takeover by the owners of supermarket chain Hazi Hinam.

The owners of independent supermarket chain Kol Bo Hazi Hinam Ltd. have entered the highest bid for Vita-Galilee Fruit Ltd. (Vita-Pri Galil) (TASE: VITA) - NIS 105 million, and await court approval of the acquisition. Hazi Hinam is Israel's third largest supermarket chain, with a 5.5% share of the market in financial terms, according to Nielsen Ratings.

Last week, after Vita's creditors failed to reach an agreement on proposals for a creditors' agreement, Bank Leumi (TASE: LUMI) and Israel Discount Bank (TASE: DSCT) asked the court to appoint a receiver for the company, who would sell it as a going concern. Vita's employees launched industrial action in protest.

In September 2008, Hazi Hinam's owners bought Biyamina Winery for $13.5 million.

Vita's share rose 36% to NIS 4.10 by mid-afternoon.

Published by Globes [online], Israel business news - www.globes-online.com - on March 3, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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