Ashdod businessman Jackie Ben-Zaken, who heads a group comprising his partners Haim Revivo and Avraham Nanikashvili, last night signed an agreement to acquire the controlling interest in Nitsba Holdings Ltd. (TASE:NTBA) from Nitsba Settlement Company, the assets company of Egged Israel Transport Cooperative Society’s members and pensioners. The transaction was carried out at a company value of $150 million for Nitsba Holdings, 40% above its market cap. First International Bank of Israel (TASE:FTIN1;FTIN5) will reportedly provide the buyers with part of the financing. Nitsba Settlement owes First International Bank over NIS 200 million.
The present deal was signed after an unsuccessful three-year effort by Egged and Nitsba managers to sell Nitsba Holdings’ parent company, Nitsba Settlement, which is fully owned by Egged members and pensioners. The present deal concerns Nitsba Holdings, in which Nitsba Settlement owns a 63% stake.
Completion of the deal is subject to approval by Nitsba Settlement’s shareholders. In addition, Gmul Investment Co. Ltd. (TASE: GMUL), Granite Hacarmel Investments Ltd. (TASE:GRNT) and Ashtrom Properties Ltd. (TASE:ASPR) have first refusal rights granted as parties in the joint control agreement in Nitsba Holdings. The three companies also have the right to participate in the sale.
Egged, which appoints Nitsba’s managers and runs the company in practice, is expected to join the Ben-Zaken group after the deal is completed, probably acquiring 15% of Nitsba Holdings.
Published by Globes [online], Israel business news - www.globes.co.il - on July 26, 2005