Mahsanei Lahav drops out of Mega bidder consortium

Mega
Mega

The group of smaller supermarkets that reorganized after Shalom Simhon's withdrawal is now short of NIS 50 million.

Mahsanei Lahav announced today that after examining the proposed framework for the acquisition the branches of the Mega supermarket chain, it had decided not to bid as part of the consortium of smaller supermarkets that had organized to buy the chain. Mahsanei Lahav accounted for about a third of the amount the consortium committed to with the Mega trustees.

Mahsanei Lahav joined the consortium organized by former government minister Shalom Simhon at the last minute, but nevertheless, in the consortium's internal bidding last week, it won seventeen of Mega's strongest branches.

The sum that Mahsanei Lahav committed to is estimated at nearly NIS 50 million, out of a total of NIS 160 million that the consortium offered for 90 Mega branches.

After Simhon himself withdrew, the consortium reorganized under Yishai Avidan, and the framework of its bid and the relationships within the consortium were reformulated. Yesterday evening, the consortium was due to submit its updated bid to the trustees.

Mahsanei Lahav CEO Ido Mor said, "In the past twenty-four hours we received the documents on the consortium's organization. After giving the matter thought we decided that we should not enter the auction in the proposed framework."

Published by Globes [online], Israel business news - www.globes-online.com - on March 17, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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