Mivtach Shamir records NIS 570m profit on Tnuva sale

Meir Shamir  picture: Eyal Yitzhar

Bright Food has obtained regulatory approval in China for its Tnuva acquisition.

Completion of the sale of food concern Tnuva Food Industries Ltd. to Chinese company Bright Food is scheduled for March 30.

One of the sellers, Mivtach Shamir Holdings Ltd. (TASE:MISH), today announced that itw would receive NIS 1.1 billion for its 20.7% stake in Tnuva, subject to adjustments. NIS 38 million of the proceeds will be deposited in a trust fund designed to guarantee certain presentations and undertakings by the company.

Following the sale, Mivtach Shamir, controlled by Meir Shamir, will post a NIS 570 million pre-tax profit, in addition to the profit included in its 2014 reports for the company's share of Tnuva's fourth quarter results.

Bright Food has reportedly told the sellers, Mivtach Shamir and Apax Partners, "The regulatory approval in China required to complete the transaction has been obtained." Following completion of the deal, Bright Food will own 76.8% of Tnuva's shares, with the rest being retained by kibbutzim and moshavim.

The Tnuva deal was signed in May 2014, when Bright Food agreed to buy 56.1% of the shares in the dairy concern from Apax at a gross company value of NIS S8.6 billion (including debt). Mivtach Shamir decided in January 2015 to exercise its option to join the sale, without the Chinese being prepared to buy its shares.

Published by Globes [online], Israel business news - www.globes-online.com - on March 24, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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Meir Shamir  picture: Eyal Yitzhar
Meir Shamir picture: Eyal Yitzhar
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