Neil Bush quits IDB tender

At the same time, the Noiman family is joining the Alexander Granovsky-Dankner consortium.

American Pacific International Capital Inc., in which Neil Bush is a director, will not participate in the tender for the acquisition of IDB Holding Corp. Ltd. (TASE:IDBH), controlled by Nochi Dankner, while the Noiman family is joining the Alexander Granovsky-Dankner consortium. Chen and Tzahi Noiman own Alon Group, a nationwide garages and vehicle services company. This morning, they signed the investment documents to join the consortium of Dankner, Granovsky's Emblaze Ltd. (LSE: BLZ) and BGI Investments (1961) Ltd. (TASE: BGI), and Netz Group Ltd. (TASE:NETZ). The bids for acquiring control of IDB were filed at noon today with the Tel Aviv District Court.

As part of the Alon Group's expansion strategy to break into new markets, we have decided to invest in IDB, in view of the deal's large potential and in the faith in our ability to fully exploit the potential of IDB and its assets together with the other participants in the investor group," said Tzahi Noiman.

Meanwhile, American Pacific International Capital, quit the tender, despite depositing a $20 million guarantee in the trust account. In a press release, the company said, The main arguments for the decision are IDB's holdings structure, its leverage, concerns about legal claims that IDB is liable to be exposed to, and commercial and legal uncertainty due to the long interim period until a settlement is closed."

Four consortia have expressed an interest to date in acquiring insolvent IDB Holding, at an investment of hundreds of millions of shekels, but there are still major questions about the consortia's ability to raise the capital needed. Two of the consortia, which have already filed bids, are expected to improve them: Eduardo Elsztain, together with IDB Holding bondholders, who has promised to inject NIS 770 million into the company; and the Danker-Granovsky consortium, which the Noiman family is now joining.

IDB Holding's bondholders hope that Elsztain will improve his offer, following the revised valuation for IDB Development Corporation to NIS 980 million. Dankner and Granovsky previously promised to invest NIS 826 million in IDB, and their position strengthened when Emblaze's board of directors approved the agreement to investment.

The fourth bidder is Xtra Holding GmbH, controlled by Motti Ben-Moshe. The company has made presentations to IDB Holding's bondholders and trustees over the past couple of weeks.

Published by Globes [online], Israel business news - www.globes-online.com - on November 3, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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