FIMI mulls TASE IPO for security co G1

Ishay Davidi Photo: Eyal Yitzhar
Ishay Davidi Photo: Eyal Yitzhar

FIMI recently met with major investment institutions to test the feasibility of selling its holding in G1, formerly G4S, on the TASE.

FIMI Opportunity Funds, led by Ishay Davidi, is considering the sale of some of its holdings in G1 (formerly G4S), the leading provider of security services in Israel. Sources inform "Globes" that FIMI officeholders recently met with several major investment institutions to test the feasibility of an IPO on the Tel Aviv Stock Exchange (TASE) for G1, probably towards the end of 2018 or in the first quarter of 2019.

FIMI has successfully sold its holdings in several portfolio companies in recent years, such as Inrom Construction Industries Ltd. (TASE:INRM), Overseas Commerce Ltd. (TASE:OVRS), and Novolog (Pharm-Up 1966) Ltd. (TASE: NVLG), through IPOs on the TASE including an offer for sale to the public. If FIMI also chooses an IPO for G1, it is likely that its shares in this company will be sold the same way.

In July 2017, FIMI completed its acquisition of G1 from UK company G4S for NIS 350 million. Before the sale, G4S drew criticism from the boycott, divestment and sanctions (BDS) movement for the involvement of its Israeli subsidiary in business beyond the Green Line, and put the company up for sale as a result.

Annual turnover of NIS 700 million

G1, managed by CEO Michael Adiv and chairperson Eldad Ben Moshe, has 7,000 employees, an annual revenue turnover of NIS 700 million, and an EBITDA amounting to 10% of its turnover. As far as is known, it is the leading company in the market. G1 is a growing and profitable company that distributes dividends and has improved its results in the past year.

The company website says that it is the leading provider of security, guarding, and safety services in Israel, with widespread nationwide deployment. The group, which was founded in 1937 under the name Hashmira, joined the G4S global corporation in 2002, and was sold to FIMI in 2017. G1's management, engineering, and technological set-up provides physical and electronic security services, low-tension systems, and safety and security services among the most advanced in the world.

G1 has four specialist divisions: security, a call center, technology, and Hotelo (computerized systems). In addition to its divisions' activity, G1 also operates advanced safety and security systems deployed at the Policity Operator facility - Israel Police's national college for policemen. G1's engineering team designed, installed, and operates multimedia, security, and safety systems; warning, building control, and room control systems; etc.

Published by Globes, Israel business news - en.globes.co.il - on October 18, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Ishay Davidi Photo: Eyal Yitzhar
Ishay Davidi Photo: Eyal Yitzhar
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