Matthew Bronfman signed a deal last night to buy 75% of IKEA Israel from the Co-Op Blue Square Consumer Cooperative Society (Co-Op) for NIS 140 million. Bronfman is expected to buy the remaining 25% from the heirs of Canadian investor Albert Gnat at the same company value. Bronfman will receive the franchise from IKEA for over ten years.
Among the concerns prepared to bid for IKEA Israel were Africa-Israel Investments (TASE: AFIL) and Fox-Wizel (TASE: FOX), owned by Harel Wiezel. Wiezel said, “I understood that there would be a tender. Had one taken place, the Co-Op shareholders would have gotten a higher price. I’m amazed that there was no tender.”
The Benjamin (Benny) Gaon group said, “The Bronfman group is trying to lead the deal without a tender. If the court allows lets them get away with it, that will be the end of it. If it goes to a tender, we’ll probably compete.”
The deal is subject to approval from the court, the Co-Op supervisory committee, and the Antitrust Authority director general. Co-Op shareholders, represented by Adv. Moshe Zingel, have already announced that they oppose the deal.
Published by Globes [online], Israel business news - www.globes.co.il - on March 24, 2005