On Sunday afternoon, after almost three months of preparations, just three bids were submitted to Judge Eitan Orenstin for the acquisition control of IDB Holding Corp. Ltd. (TASE:IDBH) as part of its debt settlement. Despite the supposed great interest in the company, in the end it turned out that few wanted Nochi Dankner's insolvent company. The parties which fought for control of IDB in the past are the same ones bidding to acquire it now.
The bids were submitted by Argentinian businessman Eduardo Elsztain, together with IDB Holding's bondholders; the Dankner-Alexander Granovsky consortium (mostly using money from Emblaze Ltd. (LSE: BLZ)); and Motti Ben-Moshe, whose bid is apparently the lowest of the three. Ben-Moshe offered two alternatives: the acquisition of all the shares of IDB Development Corporation from IDB Holding's creditors for NIS 820 million in cash; or the allotment of 21% of IDB Development's shares for NIS 250 million and the purchase of 42% of the company from IDB Holding's creditors for NIS 550 million, for a total of NIS 800 million.
The bid by the Elsztain consortium slightly improves its previous offer for the bondholders of IDB Holding (a company that will be liquidated following the debt settlement). He reduced the percentage of shares of IDB Development, which holds IDB's operational assets, that he will own following the settlement (to 45% from 50.5% in his previous offer), and he added NIS 100 million, bringing his capital injection into IDB to NIS 805 million.
As "Globes" reported, the bid's details show that Elsztain's group includes Jewish billionaires Michael Steinhardt, George Soros, and Adolfo Shmolarz. They will own 20% of IDB Development, almost half of the holding that the Elsztain consortium will own.
The Dankner-Granovsky consortium countered Elsztain's offer with a revised offer and proposal for a debt settlement for IDB. It is offering two alternatives (which are broken down into several options). The first alternative is the acquisition of control of IDB Development (67-94% of the company), at a company value of NIS 1.09 billion (before money) and subject to the sale of Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS). This alternative will include a capital injection of NIS 1.17 billion, most of which will go to IDB Holdings' creditors - a nominal 50% discount on the adjusted debt.
The Dankner-Granovsky consortium's second alternative calls for the acquisition of full ownership of IDB Development for NIS 1.05-1.55 billion. The larger amount will be injected if Clal Insurance is not sold. This alternative prices IDB Development at a value of NIS 1.1 billion (before money).
The Dankner-Granovsky consortium also includes the unknown Noiman family and Netz Group Ltd. (TASE:NETZ). Investors learned about the consortium's new partner, the Noiman family, on Sunday. Yesterday morning, the Noiman family announced that it had signed an investment agreement with the consortium, just before the bids were due to be filed with the court. It added that the family firm, Alon Group, is a nationwide garages and vehicle services company, and an investor in real estate and Israeli and foreign start-ups. The company's business is spread "from Eilat to Kiryat Shmona, with 16 garages and vehicle services centers. It employs more than 900 people."
Published by Globes [online], Israel business news - www.globes-online.com - on November 4, 2013
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