FIMI Opportunity Funds is selling 25.5% of Overseas Commerce Ltd. (TASE:OVRS) at NIS 6.83 per share, reflecting a 27% premium on the current share price and equal to the dividend-adjusted price at which Overseas Commerce held its IPO in December 2016.
FIMI acquired a 51% controlling interest in Overseas Commerce for $30 million in June 2013 and sold it for a total of $60 million, constituting a 100% return on its investment in the company, compared with a 27% return on the Tel Aviv SME60 Index during the same period.
FIMI senior partner and Overseas Commerce chairperson Gillon Beck said, "FIMI is selling control of Overseas Services with mixed feelings. We are glad about the upgrading process conducted in the company in cooperation between FIMI, the employees, and the management team headed by CEO Mordechai Glick. At the same time, we believe that the company has impressive growth potential in a number of areas and expect it to continue leading the logistics sector in Israel."
FIMI and Emilia Development (OFG) Ltd. (TASE:EMDV), controlled by Oded Feller, signed a binding agreement for the sale of all of FIMI's holdings in Overseas Commerce to Emilia Development for NIS 96 million, including NIS 4 million that depends on the company's future financial results.
Overseas Commerce posted NIS 76.8 million in sales in the first quarter of 2018, 4.8% more than in the corresponding quarter last year, and NIS 15.6 million in EBITDA. The company recently announced its entry into ecommerce logistics through an agreement with Exelot and enhanced its activity in hazardous materials by signing a memorandum of understanding to acquire Mecholnoa Transport. Overseas Commerce has distributed a total of NIS 17 million in dividends since its TASE IPO.
Completion of the deal is subject to approval by the Antitrust Authority director general.
FIMI, founded in 1996, is Israel's first and largest private investment fund, with $5 billion in managed assets. The fund acquires control of companies and takes measures to upgrade them substantially. As of now, the company had acquired 87 companies and sold 57 of them in deals for an aggregate total of $4.5 billion. FIMI currently has over 27,000 employees and operates at 50 production sites in Israel and dozens more sites around the world.
FIMI invests in Israeli companies and companies with an affinity to Israel. It has invested in a broad range of sectors, including most industrial, commercial, and services sectors. FIMI does not invest in real estate or financial companies.
Overseas Commerce, founded in the 1960s, is the largest company in Israel in cargo and container terminals in the framework of logistics services from the port to the shelf. The company provides extensive logistics services under customs supervision. It has nationwide deployment in strategic locations close to Israel's ports. Overseas Commerce operates in three main sectors: filling containers, containers for emptying, and overall logistics services.
Published by Globes [online], Israel business news - www.globes-online.com - on July 4, 2018
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