Tnuva declares NIS 200m dividend

Tnuva  picture: Tamar Mitzpi

The dividend, to be paid to China's Bright Food and the kibuutzim, comes after Tnuva hiked prices of non-controlled milk products.

After hiking prices, and after arguing that it had incurred losses totaling NIS 200 million because of the government had not raised the controlled prices of milk products - an issue on which the company has petitioned the High Court of Justice against Minister of Finance Moshe Kahlon - Israel's largest food company Tnuva has declared a dividend of NIS 200 million to be paid to controlling shareholder Bright Food of China, and to the kibbutzim that still own 23% of the company.

Tnuva's petition concerning milk prices will be heard in the High Court of Justice this month. Citing the finance minister's failure to sign an order raising price of milk products subject to price controls, last summer Tnuva hiked its prices for non-controlled products by up to 3.5%.

Tnuva says that the dividend is a distribution of profits on the sale of residential towers on the former site of the Tel Aviv wholesale market, a deal signed with Gindi during the period that Tnuva was controlled by Apax Partners.

In 2015, Bright Food bought control of Tnuva from Apax Partners and Meir Shamir for over NIS 8 billion.

Published by Globes, Israel business news - en.globes.co.il - on December 2, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Tnuva  picture: Tamar Mitzpi
Tnuva picture: Tamar Mitzpi
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