For several months, bus company Tnufa has been the subject of serious complaints, and until recently, it appeared that Metropoline was set to acquire it. However, a few weeks ago, Dan also entered the race, and this week it seems the matter has been settled: Dan and Tnufa have informed the National Public Transport Authority that the deal has been officially finalized. According to sources familiar with the details, the price is NIS 150 million shekels. Additionally, Tnufa carries debt of NIS 380 million shekels.
Disagreements persist among the partners in the company-Maya Tour, EL, China Motors, and the Shasha Group, but these do not threaten the deal itself; rather, they concern the distribution of funds within Tnufa.
Tnufa operates public transport services in the Jerusalem Corridor and Samaria. Complaints against the company have intensified in recent months. According to the Ministry of Transport’s semi-annual oversight report, Tnufa received the lowest score among all operators (55.81) for the second half of 2025. By the end of 2025, the company had also incurred fines totaling approximately NIS 78 million. On July 27, the Ministry of Transport convened a meeting about "poor service by Tnufa", at which Idan Moalem, head of the National Public Transport Authority, requested an examination of the company's substandard service levels and potential measures that could be taken against it. Moalem further proposed exploring the possibility of revoking the company's operating license. However, the legal counsel advised that preliminary procedural steps should be exhausted first.
Last week, Moalem contacted the CEO of Tnufa and set a deadline. "In accordance with the Tenders Committee's decision, you are required to submit a service improvement plan to the Authority no later than October 18. Please be advised that no further extensions will be granted. Should the plan not be submitted by the deadline, the Tenders Committee will exercise its sole discretion-utilizing all legally available tools-to ensure a significant, short-term improvement in service levels across the relevant clusters."
Moalem further warned that sanctions could include the reassignment of bus routes to other operators, the revocation of operating licenses, and the imposition of financial penalties.
"The company itself has almost no value"
In fact, the deadline set for Tnufa expired earlier this week. Meanwhile, however, another option emerged during discussions at the Ministry of Transport: the sale of Tnufa. This would effectively allow a fresh start, while sparing the Ministry of Transport a large headache.
The path to this outcome, however, was not quite so straightforward. Last July, "Globes" reported that Metropoline was on track to acquire Tnufa. Metropoline is owned by Bon Tour, which is itself held by investment fund Generation Capital (73%) and a group led by Leumi Partners (27%). Ultimately, though, as mentioned, it was Dan that secured the acquisition.
"One must understand that Tnufa itself has almost no value," explains Yitzhak Lampert of the Public Transport Users Association in Israel - "Transport Our Way" (Tahbura B'Derech Shelanu). "In fact, half of its vehicles belong to the Chinese brand Wisdom Motor, which has no established service network in Israel. This means that only companies which are also major importers, and possess the necessary garage infrastructure, could potentially benefit from purchasing Tnufa. In practice, only Superbus, Dan, and perhaps Afikim were in a position to take this on at this stage."
Lampert says that Tnufa currently has 462 registered vehicles, of which 50-70 are permanently out of service, while another 30-40 are sidelined to varying degrees. "Under the terms of the tender, Tnufa is currently required to have an additional 80 vehicles that are not sitting in the garage. The average age of the buses covered by the tender is seven years, meaning that by 2028, at least 150 vehicles will need to be replaced."
Headaches await the new owner
Meanwhile, "Globes" has learned that Mualem and the National Public Transport Authority intend to oblige Dan to purchase at least 100 new buses. In effect, along with the expansion, the new owner will inherit a fair share of headaches-and a company in need of rehabilitation.
Dan will now take over Tnufa’s tenders, including its buses and drivers-who appear to be anticipating just such a move. About two months ago, more than 400 of the company’s drivers announced a warning strike, in protest against "severe deficiencies in bus maintenance, alongside uncertainty regarding the payment of wages."
Last February, a group of investors led by Dan CEO Ofir Karni signed an agreement to acquire approximately 50% of the Dan Public Transportation Company for NIS 1.4 billion, based on a total company valuation of NIS 2.8 billion. The company is now awaiting a decision from its shareholders on the second phase of the transaction. Under this phase, the same group of investors-which includes Clal, as well as the investment arms of Bank Leumi and Bank Mizrahi-Tefahot-would acquire an additional 25% of Dan’s shares at the same valuation. This would bring their total stake to 75%, the maximum limit set by the Competition Authority.
The acquisition of Tnufa aligns with Dan’s strategy to pursue growth in its core business areas and to expand its operations beyond the Gush Dan metropolitan area to other areas of the country. It is also believed that this move is in preparation for a possible future public offering.
Published by Globes, Israel business news - en.globes.co.il - on October 19, 2026.
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