Tnuva acquired 51% of Harduf Organic Food Produce from Kibbutz Harduf two years ago for $2 million.
Hebrew daily “Yediot Ahronot” reports that Kibbutz Harduf has lost its 49% stake in Harduf Organic Food Produce to Tnuva. Kibbutz Harduf, the minority partner in the company, was unable to inject capital into the jointly-owned business, while Tnuva continued to do so, thereby completely diluting Kibbutz Harduf's stake.
Tnuva acquired 51% of Harduf Organic Food Produce from Kibbutz Harduf two years ago for $2 million.
Under the merger terms, each party must meet the other's capital injection into the company, or less have its stake diluted.
Tnuva estimates that it has invested NIS 15-20 million in Harduf Organic Food Produce for rebranding and advertising since the partnership was established. Although Kibbutz Harduf will no longer own any shares in the company, it will continue produce deliveries, and the company will continue to employ kibbutz members.
Published by Globes [online] - www.globes.co.il - on March 28, 2004