The Tnuva Food Industries Ltd. sale has hit a snag. It appears that the sale of the balance of Mivtach Shamir Holdings Ltd. (TASE:MISH) shares in the company to investment institutions will require disclosure of Tnuva's figures. Apax Partners Israel CEO Zehavit Cohen opposes this.
It also appears that the option given by Mivtach Shamir controlling shareholder Meir Shamir to buy his shares will require a routine revaluation of Tnuva. Accounting firms Deloitte Brightman Almagor Zohar and KPMG Somekh Chaikin, and Herzog Fox Neeman Law Office are reviewing the issue.
A well-informed source told "Globes", "We're currently examining the accounting and legal ramifications. Unequivocally, if any kind of valuation is required for Tnuva, Apax will let it be made."
A Tnuva spokeswoman, speaking also on behalf of Apax, said in response, "Apax declines to respond."
A senior executive at a large investment institution that is interested in acquiring Tnuva shares said, "Let Apax decide what suits them and what doesn’t. We, as an investment institution that manages members' money, must revalue Tnuva once a year as a non-tradable asset, and present its updated value in the financial reports that we publish. I can't see any exemption from the valuation. The Ministry of Finance's Capital Market Supervision Division cannot accept a situation in which an investment institution does not make a valuation of an asset worth hundreds of millions of shekels."
Two weeks ago, Bank Leumi (TASE: LUMI) agreed to buy Mivtach Shamir's 20.7% holding in Tnuva, and sell the balance to other investors, either investment institutions or private investors.
Mivtach Shamir and Apax control Tnuva through a special purpose vehicle, which owns 76.8% of Tnuva. Apax owns 73% of the special purpose vehicle, and Mivtach Shamir owns 27%.
Published by Globes [online], Israel business news - www.globes-online.com - on November 3, 2010
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