Apax offers Mivtach Shamir NIS 710m for Tnuva stake

Mivtach Shamir owns 20.7% of the food conglomerate.

Mivtach Shamir Holdings Ltd. (TASE:MISH), controlled by CEO Meir Shamir, today notified the Tel Aviv Stock Exchange (TASE) that it has received a new offer from Apax Partners Israel, run by CEO Zehavit Cohen, for its 20.7% stake in Tnuva Food Industries Ltd. - NIS 710 million. Mivtach Shamir and Apax jointly control Tnuva. Mivtach Shamir added that Apax's previous offers for the stake are null and void.

On September 6, Apax offered Mivtach Shamir NIS 655-795 million for its Tnuva holding in two different formats. The first was NIS 680 million in cash. Mivtach Shamir is asking NIS 775-800 million for the holding.

In the second proposal, Apax offered NIS 725 million, of which NIS 70 million would 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. 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 [online], Israel business news - www.globes-online.com - on September 26, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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