Sources inform "Globes" that the option granted to mivtach Shamir Food Industries Ltd. (TASE:SHAM), headed by Meir Shamir, to join the huge sale of control in Tnuva Food Industries Ltd. to Chinese company Bright Food will probably be extended by a few months.

Mivtach Shamir's option to join Apax Partners by selling its 21% stake in Tnuva for NIS 1.8 billion expires next week. In recent months, Shamir and Bright Food discussed the terms for leaving Mivtach Shamir in Tnuva, together with the Chinese company. Shamir has a number of demands, and the Chinese for their part want to keep him in Tnuva, because they prefer to maintain the company's Israeli identity.

Last May, Apax signed a deal to sell its 56% stake in Tnuva to Bright Food at company value of NIS 8.6 billion. The price for the deal is fixed, barring a dramatic downturn in Tnuva's results before the completion date. As far as is known, there has been no such downturn to date, and Tnuva's results have not been affected by the current military campaign, which has affected many businesses.

Shamir recently returned from China, where he visited the Bright Food offices and met the company leaders. As far as is known, the visit took place in a positive atmosphere, although the parties have not yet reached agreement. They will therefore probably soon announce a three-month extension of the period for the exercise of Shamir's option, putting it close to the date for completion of the deal between Apax and Bright Food.

As far as is known, as a condition for retaining his stake in the company, Shamir is demanding a put option for his Tnuva stake at the same valuation as in the Apax deal, a position as executive vice-chairman of Tnuva, and the retention by Tnuva of its international business. The parties have not yet reached final agreements on these issues.

Published by Globes [online], Israel business news - www.globes-online.com - on July 17, 2014

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