Four bids for Mega expected as deadline approaches

The deadline set by the court for submitting bids to acquire the Mega supermarket chain is tonight. Sources inform "Globes" that in recent weeks the Mega trustees have contacted a number of business people in an attempt to persuade them to submit bids to acquire the chain. The trustees hope to get NIS 250-300 million for the supermarket chain, not including inventory. There were few bids, and the trustees believe that Antitrust Authority director general Adv. Michal Halperin will not allow a merger between Mega and Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. (TASE:RMLI), as has in any case already been officially stated.

Those who previously submitted bids for the chain have been required to renew them, because the bank guarantees have expired. Moti Ben-Moshe planned to submit a bid at the deadline. Rami Levy Chain Stores controlling shareholder Rami Levy, who previously bid only NIS 120 million for the chain, plans to renew his bid. It is believed that Rami Levy is making his current bid with a partner, possibly even in a format in which he will have a minority holding, in an attempt to overcome the difficult obstacle of the Antitrust Authority director general's opposition. Brothers Ilan and Sasi Sheva, two of the owners of the Bikorey Hasade company, are expected to renew their bid, but without Of-Oz company owner Uzi Mahlab, who is apparently out of the picture. They bid NIS 160 million for Mega in the previous round.

The group of retailers who previously submitted a NIS 140 million bid for the chain planned to renew their bid, but withdrew at the last minute today, after the Yohanonof chain announced its withdrawal from the group, and no retailer was found to take the place of Yohanonof in the branches the group had planned to acquire.

"If it suits me, I'll join"

Businessman Eli Lahav is expected to join one of the bidders. In recent days, he announced the sale of his holdings in Grand Canyon Beer Sheva to Melisron Ltd. (TASE: MLSR), his partner, for NIS 145 million.

Lahav told "Globes," "Two of the bidders really want me. I haven't decided, but I might feel like it at the last minute. If something happens, I'll join forces with at least one of those two bidders. If God loves me, it won't happen, but it could happen in some kind of situation. I think that of the bidders, the only one that might cause any problems with the Antitrust Authority director general is me."

"Globes": What about the Sheva brothers?

Lahav: "The Sheva brothers are also very big suppliers - they hold 15% of the produce sector."

Will you link up with Ben-Moshe?

"Maybe. It's possible."

How much money is involved?

"They're talking about NIS 250-300 million with the inventory. For something like this, you have to get working capital ready, and there's also the renovation of the branches, which involves considerable sums. We'll see first who wins. If they want me and it suits me, I'll join. If not, I'll give them two kisses."

Published by Globes [online], Israel business news - www.globes-online.com - on May 5, 2016