Clal Industries and Investments owner Lev Blavatnik is considering the sale of his holdings in infrastructure company Taavura, of which Clal Industries has a 50% stake, and has mentioned the possibility to several investment institutions. This is not the first time that Blavatnik has considered selling some of the company, managed by the Livnat family, which owns the other 50% of the company. Under consideration now is the sale of 20% of Taavura's shares for NIS 400 million, reflecting a company value of NIS 2 billion.
Sources in the investment institutions market said that matters were still in the initial consideration and bid stages, meaning that this price is not final. It cannot be ruled out that if Blavatnik's offer to sell becomes concrete and the parties enter negotiations, the price for the deal could be lowered, even to a major extent.
Taavura, one of Israel's largest goods transporters, also imports trucks, heavy equipment, and other items. Taavura, a private company, holds a controlling interest in Maman, operator of a cargo terminal at Ben Gurion Airport and a provider of logistics services.
Blavatnik's holdings in Taavura are through Clal Industries subsidiary Mashav Initiating and Development, which also controls the Nesher Israel Cement Industries monopoly. Mashav acquired its shares in Taavura in January 1996 for NIS 120 million. Clal Industries' most recent financial statements issued when it was a public company show that Taavura had NIS 2.5 billion in revenue and a NIS 90 million net profit in 2014.
Clal Industries' reports as a public company indicates that Mashav and the Livnat family have a shareholders' agreement in Taavura. Among other things, the agreement says that there are first refusal rights for the sale of shares in Taavura and establishes a separation mechanism in the event of a change in control in either of the parties to the agreement. The Taavura shareholders' agreement becomes invalid if the holdings of either of the parties in Taavura falls to below 25% as a result of an offering of shares in Taavura to the public.
Other recent sell-offs
If a Taavura deal goes through, it will be in addition to other recent sell-offs recently promoted by Clal Industries as part of its wish to focus on its core activities. In recent years, controlling shares have been sold in industrial companies Hadera Paper (2015) and Bet Shemesh Engines (2016), both to FIMI Opportunity Funds. Clal Industries last year sold its 19% stake in ship manufacturer and port services provider Israel Shipyards to its partners in the company for NIS 140 million, and recently made headlines because of its wish to make a public offering for some of its holdings in beverages company Jafora, in which it has a 30% minority holding. Jafora is controlled by Kerur, in which the controlling shareholders are Shlomo Rodav and Ronnie Gat, who have expressed opposition to such a public offering.
Published by Globes [online], Israel business news - www.globes-online.com - on June 5, 2018
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