Leon Koffler, who controls Super-Pharm (Israel) Ltd., is in talks with an international fund on the sale of a 40% stake in the drugstore chain, at a company valuation of NIS 2 billion. The shares to be sold are those held by Bank Leumi (TASE: LUMI) (15%) and Israel Discount Bank (TASE: DSCT) (10%) in addition to a 15% stake out of Koffler's holding.
In 2007, Leumi Partners bought 20% of Super-Pharm, and in 2013 Discount Bank bought 5% from Leumi and an additional 5% from the company's former CEO Lior Reitblatt. The investment has been a successful one for the two banks, yielding them annual dividends.
The aim of the sale is to enable Super-Pharm to grow overseas through a buyer with global connections. The company seeks a partner that will help it to expand its business in China and to deal with its situation in Poland, where it has struggled to grow. Super-Pharm dominates its sector in Israel, but elsewhere it faces competition from giant corporations, and has to deal with completely different regulation. It is therefore trying to bring in an international partner that will support its model, which combines pharmacy with cosmetics and general goods, as opposed to chains that specialize in specific areas.
Published by Globes [online], Israel business news - www.globes-online.com - on September 14, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017
Published by Globes [online], Israel business news - www.globes-online.com - on September 14, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017