Saidoff ups bid, nears acquisition of Africa-Israel

Nati Saidoff Photo: PR
Nati Saidoff Photo: PR

The partnership of Moti Ben-Moshe and Lev Leviev has withdrawn from the bidding.

The Saidoff group, headed by businessman Naty Saidoff, is nearing the acquisition of full ownership in Africa-Israel Investments Ltd. (TASE:AFIL) in the framework of the bankrupt company's second debt arrangement with its creditors, according to developments over the past 24 hours in the competition for acquiring Africa-Israel.

The Saidoff group today announced that it had agreed to improve its bid to acquire Africa-Israel, as demanded two days ago by trustees for the company's three bond series. The competing group composed of Moti Ben-Moshe and current Africa-Israel shareholder Lev Leviev, yesterday announced that it was withdrawing from the competition to acquire Africa-Israel from its creditors.

Based on the demands made by the trustees and representatives of the bondholders, the Saidoff group today agreed to increase the cash payment on the day of the arrangement from NIS 485 million to NIS 505 million from the company's existing stock of cash. Most of the terms of the bid remained unchanged, so Africa-Israel's bondholders will receive NIS 1.6 billion in new Africa-Israel bonds and other benefits estimated at NIS 125 million in value in return for their old bonds. At the same time, the added payment to the bondholders will come at the expense of the early repayment promised at the end of a year after the bond arrangement, which will be reduced from NIS 300 million to NIS 280 million. About one quarter of the debt to the bondholders is being written off.

The Saidoff group also said that in view of the withdrawal of controlling shareholder Lev Leviev, and given the challenges and complexity of preserving the managerial continuity critical to proper management of the company's business, the authority to provide exemptions from lawsuits and the possibility of it being left in the company's hands would be discussed in the framework of the negotiations for a final settlement.

Published by Globes [online], Israel Business News - www.globes-online.com - on July 6, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Nati Saidoff Photo: PR
Nati Saidoff Photo: PR
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