Zwi Williger together with Delek Israel have submitted a new bid to institutional investors to buy a controlling 24.9% stake in supermarket chain Shufersal Ltd. (TASE:SAE) for NIS 24.50 per share, at a company valuation of NIS 6.5 billion, up from its previous bid of NIS 6.3 billion.
A source close to the matter has told "Globes" that Williger already owns shares in Shufersal and after buying shares for a further NIS 1.33 billion from the institutional investors, Williger and Delek Israel would each hold half of the controlling stake.
Williger and Delek Israel have also presented an ambitious business plan for Shufersal to the institutional investors. The plan aims to halt the erosion of Shufersal's market share and raise it again, while increasing annual sales by 3.5% and operating profit by 3%. This would be achieved by streamlining, cost savings and improving the chain's image.
The Williger-Delek Israel consortium wants to unify Shufersal's supply chains and real estate activities and reduce senior management. They also want to cut the number of head office employees and sales floor staff by introducing new technologies. The consortium also proposes increasing the share of private label sales and bringing in an exclusive international brand. In this way Williger-Delek Israel expects to reduce bureaucracy, improve Shufersal's competitiveness and profitability and create savings in spending of hundreds of millions of shekels annually.
Meanwhile the US consortium led by Michael Alpert have dropped out of the race to buy Shufersal, while the Amir brothers NIS 6 billion bid expires today. Most of the institutional investors had been eager to sell to the Amir brothers because of their familiarity with Israel's supermarket sector and their proven track record with Freshmarket.
Published by Globes, Israel business news - en.globes.co.il - on February 13, 2024.
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