Sources inform ''Globes'' that Tedea (TASE:TEDE), controlled by First Israel Mezzanine Investors Fund and a group headed by businessman Mota Gorfung, is selling control of Marathon Venture Capital Fund (TASE:MARA), which it purchased a little over a year ago.
Under the deal presently currently being formulated, Tedea and the Investment Corporation of United Mizrahi Bank will sell 45% of Marathon to an investor group headed by Tiv Taam CEO Sharon Toussia-Cohen for NIS 30 million. Toussia-Cohen is also among the entrepreneurs behind of the Airport City project next to Ben Gurion International Airport.
As part of the deal, Tedea will sell 25% of shares in Marathon and grant the buyers an option to purchase the remaining 5%. The Investment Corporation of United Mizrahi Bank will sell its entire 20% stake in Marathon.
The price reflects a company value for Marathon of NIS 66 million, 5% below its market value. Tedea is expected to record a NIS 4 capital gain on the sale.
Marathon is, in essence, a debt-free cashbox, with holdings in a number of venture capital companies. The fund has NIS 27 million in cash, and also has long-term investments. Marathon's current value is NIS 70 million, almost equal to shareholders' equity at the end of September.
Published by Globes [online] - www.globes.co.il - on Thursday, November 18, 2004