The deadline has expired for exclusivity in the talks for the sale of Psagot Investment House Ltd. by Apax Partners to US and European investors led by Israeli businessman Ron Weissberg. The valuation of Psagot for the purposes of the deal, which "Globes" reported last month, was believed to be $350-400 million (NIS 1.2-1.5 billion).
Talks are continuing and it is still unknown who are the potential buyers behind Weissberg. It is also possible that Weissberg will bring new partners into the deal. But whoever eventually buys Psagot will need regulatory approval from the Israel Securities Authority and the Israel Competition Authority.
Apax, led in Israel by Apax Partners Israel managing director Zehavit Cohen, acquired a 76.2% controlling stake in Psagot in 2010 at a company valuation of NIS 2.7 billion. In 2015, Apax acquired the remaining 23.8% from Markstone at a company valuation of NIS 1.9 billion. Thus in total Apax paid NIS 2.5 billion for Psagot, making its current NIS 1.2-1.5 billion valuation disappointing. Taking into account dividends paid out and the debt burden, Psagot's returns over the past year have been zero.
TASE IPO for Max Stock
Apax is pushing forward with an IPO on the TASE for discount retail chain Max Stock. Apax acquired a 55% stake in 2017 through its AMI fund for medium sized companies for NIS 170 million. Market sources believe Apax wants to hold the IPO at a company valuation of NIS 1 billion, triple the value at which it bought it three years ago.
There has been talk of a Max Stock IPO previously, which came to nothing, but market sources say that a draft prospectus is being drawn up and Jefferies investment bank will lead any IPO if it goes ahead.
Published by Globes, Israel business news - en.globes.co.il - on July 19, 2020
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