On Tuesday, holders of bonds from Series 26-28 issued by Africa-Israel Investments Ltd. (TASE:AFIL) approved by an absolute majority a proposal to authorize the bondholders' representatives to select on behalf of all the bondholders the best offer for the acquisition of the company in the framework of the debt settlement with the bondholders.
Under the approved proposal, the bondholders' representatives are authorized to take a position for all of the bondholders on the selection of the bidders whose bids will make it to the next stage of the process, and to continue negotiations with the bidders until a binding bid is obtained. The aim of the negotiations is to obtain the best possible bid terms.
Following this decision, the representatives can now select the bids they prefer from among those submitted in the first stage of the tender for the acquisition of Africa-Israel (or its subsidiaries). The Epstein Capital investment house is leading the process. The selected bidders will be entitled to enter the information room and conduct due diligence for Africa-Israel. Four weeks later, they will submit binding bids to acquire the company (or its subsidiaries) in the framework of an overall settlement with the bondholders.
The bondholders' representatives met on Tuesday. Following the meeting, it emerged that four bids had already passed to the next stage. The four bids were by Israeli concern Brosh Funds Management; real estate company Globalworth, a company listed on the London Stock Exchange; and foreign real estate funds Patron Capital and Lone Star. A number of other concerns were asked to provide clarifications about their bids, but only substantial last-minute changes can put them into the next stage of due diligence and submission of binding bids.
As of now, current controlling shareholder Lev Leviev, who submitted a binding bid in cooperation with businessman Moti Ben-Moshe, is not on the list of leading bids. Leviev himself, however, does not require due diligence, and therefore can submit a revised binding bid with his partner at the end of the second stage in the process, should they wish to do so.
Published by Globes [online], Israel Business News - www.globes-online.com - on February 2, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017