Leumi Partners to buy 10% stake in Fox unit

Harel Wizel Photo: Shlomi Yosef

Leumi Partners is also receiving an option for 9.9% more of Retailers' share capital.

Fox-Wizel Ltd. (TASE: FOX) , controlled by Harel Wizel, has signed an agreement to sell 10% of its Retailers subsidiary to Leumi Partners, the investment arm of Bank Leumi (TASE: LUMI), for NIS 66 million. Fox reported the signing of an agreement today between Retailers, in which Fox holds a 90% controlling stake (Dubi Shnaidman owns 10%) and Leumi Partners. After the deal is completed, Fox will hold 82.57% of Retailers, Leumi Partners 10.1%, and Shnaidman 7.33%.

Completion of the deal is contingent on conditions, principally approval by third parties (landlords and banks), within 45 days of the deal's signing.

Fox will receive NIS 99 million in the deal from distribution of a dividend and the sale of shares in the deal. Shnaidman will receive NIS 17 million from distribution of a dividend and the sale of shares.

The report indicates that shortly before the deal is completed, a NIS 50 million dividend will be distributed to Fox and Shnaidman. When the deal is completed, Shnaidman will sell 2% of Retailers' shares to Leumi Partners for NIS 54 million. Leumi Partners also received an option to either receive and allocation of shares or to buy from Fox or Shnaidman (whichever Fox decides) 9.9% of Retailers' share capital when the option is exercised. The option is exercisable in full after 60 days' notice is given from the date on which Retailers' financial statements for 2023 are published, i.e. in May 2024.

Published by Globes, Israel business news - en.globes.co.il - on February 10, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Harel Wizel Photo: Shlomi Yosef
Harel Wizel Photo: Shlomi Yosef
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