Sources inform ''Globes'' that Kavim Public Transport Ltd. plans to raise NIS 500 million in a private debt placement with Bank Hapoalim (TASE: POLI), Mizrahi Tefahot Bank (TASE:MZTF), and financial institutions. Kavim is raising the debt after winning tenders to operate buses in the Modi'in-Ramle-Lod and Netanya-Hadera areas, which will greatly boost its business and turn it into Israel's third largest bus company, after Egged Israel Transport Cooperative Society Ltd. and Dan Public Transportation Co. Ltd.
Kavim operates 450 buses, and will increase its fleet to 1,100 buses after winning the tender. Each bus will cost an estimated NIS 1 million.
Kavim has already reached n understanding with Bank Hapoalim, which is organizing a syndicate with Mizrahi Tefahot Bank to lend the company NIS 400 million. Kavim will raise the other NIS 100 million from financial institutions.
Kavim, founded in 2000, operates buses in the Petah Tikva-Kiryat Ono area, Afula and the Jezreel Valley, Betar Illit, Modi'in, Netanya, and Hadera. Kavim is owned by Mayer Cars and Trucks Ltd. owners Israel Kass and Jacob Shahar (35%), tour bus operator Horn & Leibowitz Ltd (35%), IN Netanya Ltd. (15%), and Arie Shasha Tours Ltd. (15%).
Published by Globes [online], Israel business news - www.globes-online.com - on August 12, 2013
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