Nahum Bitan, controlling shareholder of the Yeinot Bitan supermarket chain, is continuing his sale of branches from the chain because of cash flow problems. The main beneficiary so far has been Victory Supermarket Chain, led by CEO Eyal Ravid.
Victory notified the Tel Aviv Stock Exchange today that an agreement had been signed for its acquisition of two more of Yeinot Bitan's branches. The price for the branches, which have 4,000 square meters in total space and are located in the Azrieli Malha mall in Jerusalem and the Ayalon mall in Ramat Gan, is NIS 35 million, plus payment for inventory in the stores. The branches are strong ones, with sales likely to reach NIS 200 million in the future, according to sources in the sector. This is Victory's first foothold in an Azrieli mall and its first entry into Jerusalem.
The deadline for handing the branches over to Victory is March 1, with a possible extension until May 31. Victory says that as of the report date, it had obtained the landlord's consent for these properties. Completion of the deal is subject to approval from the Israel Competition Authority and agreement by the trustees for the Mega chain and the creditor banks of the Mega chain to cancel the existing liens on the acquired activity.
Another branch whose acquisition has been completed is the Yeinot Bitan branch in Rehovot, under a previous deal by Yeinot Bitan. This was the fifth branch acquired, following four branches in the preceding month. The Rehovot branch is due to be handed over next month, following inventory counting and a new lease for the property.
Early last December, Victory reported the completion of its acquisition of the rights in four of the five branches it sought to acquire for NIS 63 million. The deal was approved by the Competition Authority.
Published by Globes, Israel business news - en.globes.co.il - on January 27, 2020
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