Phoenix objects to Delek Israel - Shufersal merger

Shufersal  credit: Eyal Izhar
Shufersal credit: Eyal Izhar

Phoenix, which has a 9% stake in Shufersal, prefers to wait until a new CEO is appointed and all strategic alternatives are examined.

Israel Phoenix Assurance Ltd. (TASE:PHOE1; PHOE5) is opposed to Delek Israel's plans to merge with Shufersal Ltd. (TASE:SAE). Phoenix, which has a 9% stake in Shufersal, and is one of the supermarket chain's biggest shareholders, has written to the company's management, asking them to suspend examining Delek Israel's bid due to expected new senior managerial appointments (CEO Itzik Abercohen recently resigned after a dispute with chairman Yaki Vadmani), and appropriate strategic alternatives can be examined.

On Tuesday, Delek Israel, controlled by Lahav LR Real Estate Ltd. (TASE: LAHAV) and Uri Mantzur, proposed a merger deal with Shufersal Ltd. (TASE:SAE), which is Israel's largest supermarket chain, and which is traded at a market cap of NIS 7.4 billion and has no controlling core.

Delek Israel has offered a share swap deal in which it would receive a 19.99% stake in Shufersal, which would make it the retail chain's largest shareholder but not its controlling shareholder. Lahav LR Real Estate Ltd. has a 40% stake in Delek Israel, Uri Mantzur (35%), and Delek Group Ltd. (TASE:DLEKG) (25%).

Delek Israel operates 243 gas station around Israel and 203 Menta convenient stores and Cup "O" Joe cafes. Last year Lahav LR and Uri Mantzur bought control of Delek Israel and had filed a prospectus for an IPO on the TASE at an estimated company valuation of NIS 1.5 billion.

Published by Globes, Israel business news - en.globes.co.il - on April 7, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Shufersal  credit: Eyal Izhar
Shufersal credit: Eyal Izhar
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018