Shareholders, management in Zap Group sale dispute

Nir Lempert
Nir Lempert

Offers for the company from Axel Springer, FIMI and Apax have caused a deep rift.

A bitter dispute has broken out between the management of Zap Group (formerly Dapei Zahav - Golden Pages) and its shareholders, which is delaying the sale of the company. Sources inform "Globes" that the website directory company's shareholders institutional investors that took control of the company following the debt settlement in 2009 - are furious at the conduct of CEO Nir Lempert and Chairman Yaakov Elinav and have decided to take away their authority to conduct the sale talks.

According to sources involved in the matter, this exceptional step has been taken because some shareholders claim that Lempert and Elinav are putting their own interests before those of the shareholders. Those sources say that shareholders are being put under pressure to agree to the joint offer of FIMI Opportunity Funds (FIMI) and Sky Fund even though its economic worthwhileness is relatively low.

Those sources add that the pressure to agree to the sale to FIMI and Sky Fund continues even though a far more attractive purchase offer has been received from German media giant Axel Springer. The sources claim that Zap's management is attempting to thwart the sale to Axel Springer through false arguments such as that the Antitrust Authority won't approve the deal.

Zap has three offers. FIMI and Sky Fund has offered to buy 50% of the company's shares for the injection of NIS 80 million. Axel Springer has offered to buy all of Zap for NIS 140 million, and Apax Partners has offered to buy at least 60% of shares at a company value of NIS 120 million.

Zap's management said in response, "It seems that the world is divided into two groups: those who work and create value and those who engage in de-legitimization. Throughout the years, the shareholders had no complaints when the company moved from loss to profit while improving the financial situation so that today there are a number of respectable offers competing on the table."

"It was management that bought the offer from Apax to the table a better offer than FIMI and management recommends this offer and not FIMI."

"Elinav and Lempert's duty is first and foremost to the company and its employees and to create maximum value for shareholders."

Published by Globes [online], Israel business news - www.globes-online.com - on June 18, 2014

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

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