Apax Partners Israel chairwoman Zehavit Cohen told "Globes" that recently acquired Psagot Investment House Ltd. has to expand its business.
Apax acquired 76% of Psagot last month from York Capital Management LLC for NIS 2.35 billion, reflecting a company value of NIS 3.09 billion. The acquisition shortly followed the sale its stake in Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ), held through Ap-Sab-Ar Holdings Ltd. (the Apax Partners-Saban Capital Group Inc.-Arkin consortium) to Shaul Elovitch-controlled 012 Smile.Communications Ltd. (Nasdaq:SMLC; TASE: SMLC) for NIS 6.5 billion.
Cohen said, "Psagot has proper management and it functions. It's not just a company like Tnuva, which needs a lot of investment. Psagot only has to make a great leap forward."
"Globes": How?
Cohen: "By entering supplementary businesses like insurance and pensions. It isn't there now."
You've sold Bezeq and bought Psagot. Will Apax make more acquisitions?
"We're constantly examining deals. If there's a deal, then, sure."
Will you seek a company with more than its betterment potential; a company with assets to sell?
"Not necessarily. I'll be satisfied with a company with potential."
Commenting on Apax's acquisition of food company Tnuva Food Industries Ltd., Cohen said, "You've all read about the takeover of Tnuva. How could it be that we acquired 56% of the company? No one could take it over. It's not like I hold 10%. It's not possible to sell Tnuva so long as we don’t want to sell and there are no buyers. The company is at the start of the road for great growth. Why lose out? We have many years ahead of effort and growth."
Published by Globes [online], Israel business news - www.globes-online.com - on January 12, 2010
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