A few weeks ago, MacCann Erickson exercised its option to increase its 51% stake in Kesher-Barel to 60%.
Sources inform “Globes” that Nero Investments, which owns 22% of Israel advertising agency Kesher-Barel MacCann Erickson, has decided to sell its entire interest in the firm to international agency MacCann Erickson. The company value for the deal is $50 million.
A few weeks ago, MacCann Erickson exercised its option to increase its 51% stake in Kesher-Barel to 60%. Under the contract between the parties, the exercise of the option gave Nero an automatic put option to sell either 11% or 20% of the company. Exercise of this option, however, required the consent of all the Nero founding partners: Avner Barel, Arie Ruttenberg, and Zvi Friedman, plus Zadik Bino, who was not a founder, but entered Nero as a partner at a later stage.
By this deal the Nero partners will completely divest themselves of all holdings in Kesher-Barel, ownership of which will henceforth be divided between MacCann Erickson (82%) and Kesher-Barel general manager Ilan Shiluach (18%). Shiluach is due to receive a further 3% of the shares by the end of 2005, under his contract with the agency.
Published by Globes [online] -l www.globes.co.il - on July 1, 2003