Zaki Rakib told "Globes" that he has no intention of withdrawing from the deal to acquire Ma'ariv Holdings Ltd. (TASE: MARV), the owner of Hebrew daily "Ma'ariv". He said that the necessary review for completing the deal was continuing.
Nevertheless, despite expectations at "Ma'ariv" for the transfer of the money by the end of this week, or early next week, it appears that Rakib will use the time available to him under the structure of the acquisition agreement to transfer the money only at the end of the month, if he decides to do it at all. It seems that the parties in the deal, Rakib and Ma'ariv controlling shareholder Ofer Nimrodi, are in a mutual stand-off, and that there is no contact between them.
Stubborn rumors have been circulating that Rakib, a high-tech billionaire, who signed the deal to acquire Ma'ariv in May, has changed his mind. The rumors point to the fact that the money has not yet been transferred. Rakib is due to invest over NIS 200 million into Ma'ariv. More than half the money is to cover the newspaper's debts.
Nimrodi-controlled Israel Land Development Company (TASE: ILDC) owns 61.4% of Ma'ariv Holdings. When the deal is completed, Israel Land and Rakib will each own around 44% of the company.
Published by Globes [online], Israel business news - www.globes-online.com - on August 18, 2010
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