Veridis close to buying Infinya from FIMI for NIS 2.35b

Ishay Davidi Credit: Eyal Izhar
Ishay Davidi Credit: Eyal Izhar

Delek Auto's sustainability unit will pay a 17.5% premium for the company formerly called Hadera Paper, if the deal goes ahead.

Delek Automotive Systems Ltd. (TASE:DLEA) sustainability unit Veridis Environment Ltd. (TASE: VRDS) has notified the Tel Aviv Stock Exchange that it is close to signing an agreement with Israeli private equity firm FIMI Opportunity Funds to buy Infinya (TASE: INFN), formerly Hadera Paper after protracted talks.

Veridis reports that in the deal it would pay NIS 2.35 billion cash for Infinya and delist the company from the TASE. This price would represent a 17.5% premium on Infinya's closing price yesterday - the company had a market cap of NIS 2 billion.

FIMI, controlled by Ishay Davidi, acquired Hadera Paper as it was then called in 2014, when it was in a troubled financial situation and appointed Gadi Cunia as CEO, a position he still holds today. The company has undergone a major transition from reporting annual losses of NIS 150 million and a debt of NIS 1.2 billion. Today Infinya has EBITDA of NIS 400 million compared with NIS 80 million in 2014. In the second quarter of 2022, Infinya reported revenue of NIS 458.3 million, up 12% from the corresponding quarter of 2021, and net profit of NIS 35.8 million, up 161% from the corresponding quarter of 2021.

The deal is being supported by Advs. Uri Rosenberg, Ran Shalom, Liraz Kahana and Dan Adar.

Published by Globes, Israel business news - en.globes.co.il - on August 25, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Ishay Davidi Credit: Eyal Izhar
Ishay Davidi Credit: Eyal Izhar
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