Hebrew daily "Ma'ariv" has been sold to publisher Shlomo Ben-Tzvi for NIS 45 million. The deal could reach NIS 70 million, depending on how much "Ma'ariv" can collect on its debts. The agreement was signed between Ben-Tzvi and "Maariv" controlling shareholder Discount Investment Corporation (TASE: DISI) this morning. Ben-Tzvi is only buying the newspaper, and parent company Ma'ariv Holdings Ltd. (TASE: MARV-M) with debts of NIS 408 million, of which NIS 95 million is to employees, has filed for a stay-of-proceedings from the courts.
Ben-Tzvi is expected to employ 300 of "Ma'ariv's" workforce out of a total staff of 1,500.
Nochi Dankner, the controlling shareholder of IDB Holding Corp. Ltd. (TASE:IDBH) unit Discount Investment Corporation (TASE: DISI), which owns the newspaper, did not attend the board meeting last night that approved the deal because he was abroad.
Regarding the compensation due to the newspaper's employees, Dankner reportedly told employees' representatives, "I intend getting the board of Discount Investment to make up 69% of what is missing, and I expect Israel Land Development Company (TASE: ILDC) to provide the rest." ILDC, controlled by Ofer Nimrodi, is the former owner of the newspaper.
Dankner added, "I hope the board are with me on this subject. It's important that all the employees get the message that this is my personal pledge. I'm not responsible for the position taken by external directors but this is what I'll recommend to our representatives."
He continued, "It's important from a social and a democratic point of view that the paper does not close. And most important is how many jobs there will be. Therefore, it is important to me that the Ben-Tzvi deal takes place as quickly as possible. I expect the employees to assist in this."
Published by Globes [online], Israel business news - www.globes-online.com - on September 20, 2012
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