Unless there is a last-minute crisis, independent supermarket chain Yeinot Bittan Ltd. will acquire Kimat Chinam from Zim Direct Marketing Ltd. (TASE: ZMMR) next week. Sources inform ''Globes'' that the parties agreed that Yeinot Bittan will pay Adi and Rani Zim NIS 265 million for 75% of Zim Direct, reflecting a company value of NIS 354 million, slightly less than its market cap of NIS 360 million, after money, at its IPO 18 months ago.
The signing of the deal was delayed because the buyers, Yeinot Bittan owners Nahum and Nurit Bittan are observant Jews who do not sign deals in the three weeks before the 9th of Av Fast, which falls next week.
In May 2012, "Globes" reported that Yeinot Bittan was in talks to acquire Kimat Chinam. Zim Marketing denied the report and made no notice to the TASE about any negotiations, as required by law.
The Bittans reportedly have no plans to merge privately owned Yeinot Bittan with publicly-traded Kimat Chinam. However, they do intend to create synergies between the two supermarket chains to achieve a commercial edge and other advantages.
Kimat Chinam's revenue rose 21% to NIS 1.27 million in 2011, compared with 2010, due to the opening of 20 supermarkets during the year to a total of 33 stores.
Yeinot Bittan was founded in 1993, and has 27 supermarkets. Its annual turnover is NIS 1.33 billion, and the acquisition of Kimat Hinam will create Israel's third largest supermarket chain after Shufersal Ltd. (TASE:SAE) and Mega of Alon Holdings Blue Square - Israel Ltd. (NYSE: BSI; TASE: BSI).
Zim Marketing's share price fell 4.7% by mid-afternoon to NIS 0.26, giving a market cap of NIS 307 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 23, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012