Sources inform ''Globes'' that the negotiations by Markstone Capital Partners Group LLC for the sale of bookseller Steimatzky Group Ltd. began in March, a price of NIS 70 million had been reached, and the parties had exchanged drafts, but the buyer, Yediot Books Ltd. wanted to run the deal by the Antitrust Authority before signing.
However, the negotiations were halted by the death of Markstone co-managing partner and Steimatzky chairman Amir Kess in a road accident on April 3. The day before his death, he met Yediot Books CEO Dov Eichenwald. Last Thursday, all of Yediot Books' publishers held an urgent meeting to receive an update on the Steimatzky acquisition negotiations. It is not yet clear what was agreed about Steimatzky's large debt, which totals NIS 209 million, even after Bank Hapoalim (TASE: POLI) exercised its liens on Markstone's assets related to Steimatzky's debts last week.
Given the cross-ownership problems in Israel's book industry, in which publisher Kinneret Zmora-Bitan Dvir Ltd. and Modan Publishers Ltd. own Steimatzy rival Tzomet Sfarim Ltd., the opinion of Antitrust Authority director general David Gilo was a major subject at the meeting.
Gilo, however, is unlikely to nix Steimatzky's sale to Yediot Books, because every other attempt to sell the bookseller in the past two years has failed, and the repercussions of its collapse on the sector and the company's 1,100 employees. Therefore, if the parties reach a deal, Gilo will probably stick to restrictions by the new consolidated entity.
On Thursday, Steimatzky paid debts to several small publishers. Today, it paid large publishers, including Yediot Books, Keter Publishing House Ltd., and Kibbutz Hameuchad- Sifriat Poalim Publishing Group Ltd. The payment allows the publishers, some of which had halted the publication of new books, to resume publication, at least for a few weeks.
Yediot Books declined to comment on the report, and no response was received from Steimatzky or Markstone by web-posting.
Published by Globes [online], Israel business news - www.globes-online.com - on April 13, 2014
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