As the Lod District Court again postpones the deadline for bids for Mega - this time until Friday afternoon - Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. (TASE:RMLI) has notified the Tel Aviv Stock Exchange (TASE) that it will bid to buy the financially troubled supermarket chain. Rami Levy is the only company to have submitted a bid. Rami Levy states that it will not merge the Mega chain with its existing operations but operate it as a separate chain should its bid be accepted.
The company statement said, "The company's work plan is to operate Mega branches, if the purchase bid wins, through a subsidiary and if dependent conditions are accepted (including approval by the Israel Antitrust Authority and the court) as a separate entity, with a separate head office, separate accounting, separate operations, and separate management, and only purchasing operations will be amalgamated."
The statement added, "The company believes it can take advantage of the Rami Levy Group brand and its financial strength to offer cheaper prices and bring the benefits of cheaper prices into the cities. The company plans hiring 1,000-2,000 more employees to increase sales per square meter of the branches that will be operated by the subsidiary within this framework."
Published by Globes [online], Israel business news - www.globes-online.com - on March 9, 2016
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