Dankner-Granovsky group begins disintegrating

Willi-Food has withdrawn its NIS 65 million loan but the consortium still believes it can win IDB.

The Dankner-Granovsky group has realized that it's all over. On Wednesday, G. Willi-Food Investments Ltd. (TASE:WLFD), controlled by the Williger brothers, announced that it wanted to withdraw the NIS 65 million loan it extended to Nochi Dankner and Alexander Granovsky for the investment in IDB Holding Corp. Ltd. (TASE:IDBH).

To date, the Dankner-Granovsky group has deposited over NIS 700 million with the trustee. The money will likely be withdrawn from the trustee's account in the coming days, if Tel Aviv District Court Judge Eitan Orenstin officially endorses the bid by Moti Ben-Moshe and Eduardo Elsztain and gives them control of IDB, a decision that will cause Dankner and Granovsky's partners to quit the consortium.

In addition to the Williger brothers, the Dankner-Granovsky consortium includes the Noiman family, who controls Neto ME Holdings Ltd. (TASE;NTO), which pledged NIS 120 million; Netz Group Ltd. (TASE:NETZ), which pledged NIS 65 million; Mexican-Jewish philanthropist Daniel Jusidman, who pledged NIS 90 million; and the Nakash brothers, who pledged NIS 250 million.

Dankner and Granovsky promised to invest NIS 500 million through a new company that they would found for the investment in IDB. Most of the money would come from Emblaze Ltd. (LSE: BLZ), which Granovsky acquired several months ago through BGI Investments (1961) Ltd. (TASE: BGI).

A spokesman for the Dankner-Granovsky group said in response, "Willi-Food has asked to withdraw its investment, provided as a loan with an option to convert into shares. We were happy to release the money, but the other investors are waiting for the judge's decision. We believe that for the good of the creditors and IDB's companies, it would be better and desirable for our consortium to win the settlement for the company."

Published by Globes [online], Israel business news - www.globes-online.com - on January 1, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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