On Tuesday, Antitrust Authority director general Dror Strum approved a merger between the Central Bottling Company (Coca Cola Israel) and Neviot - Nature of Galilee (TASE: NVIO). Moshe (Mozi) Wertheim controls Coca Cola Israel, while the Podhorzer family controls Neviot.
Strum, however, forbade Coca Cola Israel to institute exclusivity in its refrigerators, and to establish a uniform discount for Coca Cola Israel and Neviot products.
Coca Cola Israel, which is classed as a monopoly in the cola beverage sector, already owns 45% of Neviot. The remaining shares are held by the Podhorzer family and the public. Under the merger agreement, Coca Cola Israel is buying the Podhorzer family’s stake in Neviot, thereby increasing its holdings in the company to 90%.
Coca Cola Israel will pay an estimated $11.6 million for the shares, and will also pay the Podhorzer family 2.3% of Neviot’s sales turnover in 2005-2007, up to a ceiling of $2.5 million. The deal reflects a value of $27 million for Neviot, a 20% premium on the company’s $22.6 million market cap.
Published by Globes [online] - www.globes.co.il - on August 5, 2004