As "Globes" reported yesterday, after complex and intensive negotiations, Ma'ariv Holdings Ltd. (TASE: MARV-M) trustees Adv. Yaron Arbel and Dr. Shlomo Nass have submitted their recommendations to Tel Aviv District Court Judge Varda Alshech for the sale of the company as a going concern. The trustees reached a combination deal, which will allow 1,400 Ma'ariv employees to keep their jobs, including employees of the printing house and the newspaper's distribution network.
The trustees said that the bidding in the auction was tough, and only decided late last night, after a working agreement was reached between the buyer of the printing house and Shlomo Ben-Tzvi who will buy Hebrew daily "Ma'ariv".
According to the trustee's recommendation for court approval of the winners' bids, Ma'ariv Holdings' activities, including "Ma'ariv", the local newspapers, its website nrg, magazines, and publishing house will be sold to Ben-Tzvi. They also recommend selling the company's printing house in Bat Yam to Amos Maimon.
Nass and Arbel said that the success in running Ma'ariv during the stay of proceedings resulted in the expedited auction, in which bids were received for the sale of the company as a going concern for NIS 145 million. This figure includes the newspaper, magazine, and website, the printing house, and collection of the company's debts.
Approval of the bids should provide jobs for 1,400 of Ma'ariv Holdings' 2,000 employees. The negotiations resulted in a much better offer than Ben-Tzvi's original offer both financially and in terms of jobs (1,400 instead of the original offer of 300 jobs). The trustees said that their primary consideration was saving jobs at the company, which was why their negotiations focused on increasing the number of jobs at the company after the sale.
Ben-Tzvi wants to operate "Ma'ariv" and continue publishing the newspaper and its magazines under their current names. Under his offer, Hirsh Media will hire 450-500 Ma'ariv Holdings employees as follows: 330 correspondents and managers for a minimum of 18 months; 50-70 independent contractors and logistics employees for a minimum of 18 months; and 70-110 printing staff, who will work under contract with the buyer of the printing house.
The winning bids are subject to approval of the court, at a hearing tomorrow morning, and of the Antitrust Authority.
Published by Globes [online], Israel business news - www.globes-online.com - on October 22, 2012
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