Completion of the sale of control in Tnuva Food Industries Ltd. to Chinese company Bright Food was delayed until October 5, Mivtach Shamir Holdings Ltd. (TASE:MISH) reported today to the Tel Aviv Stock Exchange (TASE). Mivtach Shamir owns Tnuva jointly with Apax Partners.
The report also said that if Bright Food does not manage to obtain the required regulatory approval in China by the new date, either side will be entitled to postpone the deal until January 5, 2015.
Last May, Apax signed a deal for the sale of its 56% stake in Tnuva to Bright Food at a company value of NIS 8.6 billion. The price is fixed unless Tnuva's results take a dramatic downturn before the completion date.
Last month, Mivtach Shamir issued an update on its negotiations to join the deal for sale of control in Tnuva. Mivtach Shamir stated, "If the negotiations between Bright Food and the company produce a binding agreement within two months, the company will not sell its holdings in Tnuva, and will remain a partner in Tnuva in cooperation with Bright Food."
Mivtach Shamir added, "If the talks do not produce a binding agreement within the aforementioned period, the company will sell its holdings in Tnuva on the completion date of the Apax- Bright Food agreement, according to tag-along rights conditions."
Published by Globes [online], Israel business news - www.globes-online.com - on August 19, 2014
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