Prime Minister Ehud Barak got some indication today of the financial cost involved in the evacuation of the Golan Heights. Bottled water company Mey Eden, located in the industrial zone of Kazrin announced the signing of a term sheet with US investment fund Aqua International Partners, according to which the latter will purchase 25% of Mey Eden shares at a $190 million company value before money. The acquisition will mostly involve an allocation of shares, with a minor part through the purchase of shares held by Mey Eden controlling shareholders Roni, Yehuda and Giora Naftali.
The price of the deal is 35% higher than the company shares' value at the start of stock exchange trading today. Following the announcement, the company's shares rose 15%, completing an almost 200% rise since the beginning of the year. The company denied today that the signing of the deal with Aqua International Partners was connected to the withdrawal from the Golan Heights, which has become a real possibility in the past few days.
The Mey Eden plant is situated near the Selukia springs, from which it pumps water and markets it in Israel. Mey Eden was founded in 1976, and came under the control of the Naftali brothers in 1988. In 1993, the company issued its shares on the Tel Aviv stock exchange. Mey Eden is the largest and most successful bottled water company in Israel.
Aqua Partners, which is acquiring Mey Eden's shares contingent on due diligence and detailed contract preparations, is a fund listed in San Francisco, specializing in investments in companies related to water technologies and in projects in South America and Europe. The fund is reportedly part of the Texas Pacific Group investment fund (TPG), which coordinates activities of pension funds. Last year, TPG cooperated with businessman Benny Steinmetz to compete for core control of the Discount Bank, but withdrew from the tender at the beginning of this year.
Published by Israel's Business Arena on December 15, 1999