David Wiessman, until recently the owner and CEO of financially troubled holding company Alon Blue Square Israel Ltd. (NYSE: BSI; TASE:BSI), is acquiring Israeli gas station chain Sonol Israel Ltd, from Azrieli Group Ltd. (TASE: AZRG). Market sources believe that Wiessman is paying about NIS 364 million.
Wiessman is well acquainted with Israel's fuel market. Before being ousted by his partners from the management of Alon Blue Square, he served as chairman of its subsidiary (and Sonol rival in the gas station market) Dor Alon from April 1999 until September 2015.
The extent of Wiessman's wealth is not fully known as some of his holdings are privately held. He owns 20% of Beilisol, controlled by his uncle Shraga Biran (80%), which itself own half of the private part of the Alon Group, which is also in financially troubled circumstances with assets which are significantly higher in value than its debts. Wiessman also has holdings in the Alon Group's public companies with liquid assets worth NIS 191 million.
Sonol operates 230 gas stations around Israel and about 190 convenience stores with 2,000 employees. Sonol is an asset outside of Azrieli's core activities in the real estate sector. Azrieli has been trying to sell Sonol in recent years and although there have been interested parties, it has been unable to offload the company.
Azrieli has confirmed the report. The deal will not include land worth NIS 107 million owned by Sonol at Pi Glilot north of Tel Aviv.
Published by Globes [online], Israel business news - www.globes-online.com - on April 14, 2016
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