Completion of the sale of control of Israeli food company Tnuva Food Industries Ltd. by Apax Partners to Chinese food giant Bright Food Group has been delayed by up to several weeks. The postponement is in all likelihood to allow for financing of Mivtach-Shamir Food Industries Ltd. (TASE:SHAM) stake in Tnuva. Meir Shamir, who controls Mivtach-Shamir is expected to realize his option to realize his holdings in Tnuva, market sources believe.
The huge deal for the sale of control in Tnuva at a company value of NIS 8.6 billion has already been postponed twice and as things stand is due to be completed by January 5, 2015.
According to sources involved in the deal, Shamir is expected to announced his intention to realize his rights given to him by Apax to join the deal and sell his 21% stake. The sale is expected to earn Mivtach-Shamir NIS 1.2 billion.
If as expected, Shamir does sell his stake in Tnuva, then it is possible that Bright Food will bring in a partner to buy the shares. It has been previously reported that Chinese private equity fund Fosun Capital is mulling the option of buying Mivtach-Shamir's Tnuva stake.
In May, Apax Partners managed by Zehavit Cohen, signed an agreement to sell its 56% stake in Tnuva. In addition to Mivtach-Shamir with a 21% stake, the kibbutz movement which is not part of the controlling core of Apax and Mivtach Shamir, holds the balance of Tnuva's shares.
Bright Food declined to comment on the report.
Published by Globes [online], Israel business news - www.globes-online.com - on December 29, 2014
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