On the eve of the final day for fulfilling the prior conditions, Mair Shamir and Bank Leumi (TASE: LUMI) have reached agreement on the sale of half the Tnuva shares the Mivtach Shamir owns. Leumi will pay NIS 388 million and will buy 13.5% of the special purpose vehicle (SPV) that controls foods company Tnuva, and holding equivalent to 10.35% of Tnuva itself.
A quarter of Mivtach Shamir's shares will be sold to private investors: the Turgeman family, and Avi Gross, who will each buy 3.4% of the SPV. Leumi will find buyers for the quarter that remains on the shelf after Bruno Landsberg and Chen Lamdan withdrew from the deal. Suorces inform "Globes" that First International Bank of Israel (TASE: FTIN1;FTIN5) is among those interested.
Altogether, Shamir will receive NIS 776 million for his shares. The sum was originally supposed to have been NIS 1.23 billion, but adjustments were made for the NIS 1.85 billion dividend that the SPV distributed to Apax and Meir Shamir a month ago. Shamir's share of the dividend was some NIS 500 million, which was deducted from the price originally agreed for the shares. On the other hand, Shamir received NIS 50 million compensation for the cancellation of the adjustment mechanism in the agreement (the option), intended to compensate him for a future rise in the value of Tnuva.
Shamir will post a profit of NIS 970 million on his investment in Tnuva, after buying into it for NIS 320 million three years ago.
Published by Globes [online], Israel business news - www.globes-online.com - on March 2, 2011
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