Leumi buys Tnuva stake
Bank Leumi (TASE: LUMI) has reached an agreement on the acquisition of the 20.7% of Tnuva Food Industries Ltd. held by Mivtach Shamir Holdings Ltd. (TASE:MISH) for NIS 1.23 billion, giving Tnuva a company value of NIS 6.15 billion. “Globes” was the first to report the negotiations between the parties, and predicted that Bank Leumi would pay about NIS 1.5 billion for the stake.
The sale of Tnuva paves the way for trading in Mivtach Shamir’s share on the Tel Aviv Stock Exchange (TASE) to resume. Mivtach Shamir is controlled by Meir Shamir. Bank Leumi president and CEO is Galia Maor.
Mivtach Shamir has not published the full financial reports of Tnuva because of objections by its partner in the company, Apax Partners, which owns the 56.1% controlling interest in Tnuva.
Mivtach Shamir and Apax together own 76.8% of Tnuva through a special purpose vehicle, AP.MS.TN. Holding Ltd., in which Apax owns 73% and Mivtach Shamir owns 27%, giving the company its 20.7% stake in Tnuva. the Bank of Israel allowed Bank Leumi to acquire only 10% of the special purpose vehicle, giving it an indirect 7.7% holding in Tnuva.
In addition, Bank Leumi subsidiary Leumi Partners Ltd. will arrange a consortium of other investors that will buy the balance of Mivtach Shamir’s Tnuva stake within a year. Earlier this month, “Globes” reported that Supervisor of Banks Rony Hizkiyahu allowed Bank Leumi to initially acquire 13% of the special purpose vehicle, half of Mivtach Shamir’s holding in it. In this event, the bank will have to sell 3% of the special purpose vehicle to another company within a year.
Bank Leumi’s share price rose 0.1% in morning trading today. Trading in Mivtach Shamir’s share is suspended; it is listed at NIS 112.90, giving a market cap of NIS 1.18 billion.
Published by Globes [online], Israel business news – www.globes-online.com – on October 19, 2010
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