Mivtach Shamir Holdings Ltd. (TASE:MISH) intends rejecting the offer by Apax Partners Israel to acquire its shares in Tnuva Food Industries Ltd..
Sources inform "Globes" that Mivtach Shamir controlling shareholder and chairman Meir Shamir has not even responded to the offer because the company believes that the demands made by Apax CEO Zehavit Cohen are unreasonable. The offer is seen by Mivtach Shamir as insulting.
Apax Partners offered Mivtach Shamir two options for buying out its 20.7% stake in Tnuva. According to Mivtach Shamir's notice to the TASE, Apax is offering NIS 680 million in cash, if Mivtach Shamir transfers the holding by December 29.
Alternatively, Apax is offering NIS 725 million, of which NIS 70 million will be deposited with a trustee until August 31, 2013. The amount from the escrow that Apax will pay will depend on a percentage of the growth Tnuva's cumulative net profit in 2011-12, net one-time gains and expenses, on the basis of an upside formula. If Tnuva's growth is less than 10% over this period, the amount in the escrow will revert to Apax; if Tnuva's growth is more than 10%, the amount in the escrow will be paid to Mivtach Shamir plus an additional NIS 70 million for a total of NIS 795 million.
Published by Globes, Israel business news - www.globes-online.com - on September 13, 2011
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