A US consortium led by businessman Michael Alpert has become the third group to submit a bid to institutional investors to buy a 24.9% controlling stake in Israeli supermarket chain Shufersal Ltd. (TASE:SAE). The offer is at NIS 23 per share for a company valuation of NIS 6.11 billion, slightly higher than the company's current market cap of NIS 6.04 billion.
This follows bids by Zwi Williger, founder and chairman of food importer G. Willi Food International, at a company valuation of NIS 6.5 billion, and Yossi and Shlomi Amir, who sold supermarket chain Freshmarket to Paz in 2021. The Amir brothers bid is at a company valuation of NIS 6 billion.
The chances of the Amir brothers buying the controlling stake has improved after they reached an agreement with Paz. After selling Freshmarket, the brothers signed a non-competition agreement with Paz that expires at the start of 2025 but they are prepared to pay Paz NIS 100 million to shorten the agreement.
Even though the Amir brothers have submitted the lowest of the three bids, the institutional investors are inclined to sell to them because of their familiarity with Israel's supermarket sector and their proven track record with Freshmarket.
Israel's largest insurance and investment institutions including Migdal, Harel, Clal, Menorah Mivtachim, The Phoenix and Altshuler Shaham, own the majority of the company's shares. Each institution will sell 40% of its stake to the winning bidder.
Published by Globes, Israel business news - en.globes.co.il - on February 11, 2024.
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