Bright Food threatens to float Tnuva without kibbutzim

Tnuva  picture: Tamar Mitzpi

Attempts by the kibbutz movement to oust Tnuva chairman Haim Gavrieli for alleged unethical behavior have caused a rift between the majority and minority shareholders.

Chinese food giant Bright Food, which has a 77% stake in Tnuva, says it plans an IPO on the Tel Aviv Stock Exchange or an international stock market, regardless of whether minority shareholder the kibbutz movement cooperates, because, "it is a good time to go public and enter markets, in particular taking into account the overall good market conditions."

Bright Food, which has been the majority shareholder in Tnuva since 2014, accuses the kibbutz movement of violating agreements and says it is considering floating only its own stake and suing the kibbutz movement for causing it damage "as a result of its conduct."

Bright Food VP Lili Wang wrote to the Association of Kibbutz Holdings in Tnuva head Amit Ben-Yitzhak describing the kibbutz opposition to an IPO as "groundless" and that the opposition violates agreements between the two parties. She added that the kibbutzim would pay for any damage caused to Bright Food or Tnuva as a result of conduct, which is "disrupting the public offering process from continuing and would give Bright Food no choice but to consider a separate off erring of its holdings to the public."

Bright Food is eager to conduct an IPO at the current time at an estimated valuation of NIS 9-10 billion. The Chinese company is demanding a response within a week.

Wang's complaints follow the demand of the kibbutz movement's representatives on the board to convene a meeting after Rosh Hashana to oust Tnuva chairman Haim Gavrieli. This follows reports of an incident between Gavrieli and a female company employee during a trip abroad. The chances of ousting Gavrieli are small because of Bright Food's majority on the board but the aim is to bring discussions out into the open about the ethical aspects of the matter.

Published by Globes, Israel business news - en.globes.co.il - on September 5, 2021

Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Tnuva  picture: Tamar Mitzpi
Tnuva picture: Tamar Mitzpi
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