Prior to the conclusion of the deal, the company will distribute a NIS 29 million dividend.
After more than half a year of open dispute, an agreement was signed at the end of the week, whereby the Bronofsky family will sell its shares in Japan Auto, importer of Subaru to Israel, to Mirage, controlled by Gad Zeevi. The price will be $29.1 million. Prior to the signing of the agreement, the parties concurred that the dispute between them was settled.
At present the Bronofsky family and Mirage, an investment firm whose shares are listed on the stock exchange, each hold 50% of the shares of Japan Auto. The deal reflects a value of $58 million for the motor vehicle agency. Prior to the implementation of the deal, Japan Auto will distribute a NIS 29 million dividend to the shareholders. The liquidation of the dispute has enabled profits to be distributed for the first time in many years.
Mirage acquire its stake in Japan Auto in November 1997 from Daniel Berkovitch, for $20 million, at a company value of only $40 million. Two years later, a dispute broke out between Mirage and the Bronofsky family which maintained that the poor management of the Zeevi group had occasioned Japan Auto NIS 12 million in damages.
Published by Israel's Business Arena on 2 July 2000