Paz Oil Company (TASE: PZOL) notified the Tel Aviv Stock Exchange this morning that it opposes the bid by Yossi and Shlomi Amir to buy control of supermarket chain Shufersal (TASE: SAE). Paz says that the Amir brothers signed a three-year non-compete agreement with it when it bought the Freshmarket chain from them last year.
"The company has informed the Amir brothers in writing that their offer represents a breach of their commitment not to compete for a period of 36 months from the date of completion of the merger (until January 1, 2025), and also a breach of their duties under law as officers of Freshmarket. In the light of the above, the company has informed the Amir brothers that they must withdraw their offer to buy shares in Shufersal," Paz's notice to the stock exchange states.
The Amir brothers are offering NIS 2.46 billion (NIS 28 per share) for an allocation of 88 million shares in Shufersal, representing 24.9% of its issued and paid share capital. Shufersal's share price closed at NIS 27.20 yesterday, meaning that the offer represents a premium of just 3%.
In August last year, the Amir brothers, who controlled the Freshmarket supermarket chain, led its sale to Paz at a valuation of NIS 2 billion. The deal was completed in January this year, and Freshmarket's shares were delisted from the Tel Aviv Stock Exchange.
Published by Globes, Israel business news - en.globes.co.il - on March 15, 2022.
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