FIMI to float Overseas Commerce at NIS 450m value

FIMI's Ishay Davidi

The maritime logistics company published a draft prospectus for an offer for sale and an NIS 100 million bond offering.

Maritime logistics company Oversea Commerce draws closer to the stock exchange via an offering which will combine an offer for sale by the owners, including FIMI Opportunity Funds, and debt raising. The planned offering was first reported in "Globes" last July. The offering will be led by Discount Underwriting & Issuing Ltd.

Overseas Commerce's shareholders are Ishai Davidi's FIMI, with a 50% stake; Gad Zeevi and Zim Integrated Shipping Services Ltd., with a 25% stake each. In the offer for sale, shareholders intend to sell a 40%-45% stake in the company a NIS 450 million company valuation (the offer is worth NIS 200 million). The offering will produce a handsome profit of over 100% for FIMI, which acquired a stake of slightly more than 50% from Zim and Zeevi three years ago in a deal that reflected a company valuation of only NIS 213 million. In this planned offer for sale, FIMI will replicate the successful model by which it substantially increased value in Inrom Construction Industries Ltd. (TASE: INRM) about two and a half years ago. Then, FIMI sold about a half of its Inrom shares for NIS 350 million. Inrom produces, sells and markets products for the industry, the construction and renovation sector, and more, and operates in three primary fields - construction solutions (Ytong), construction finishes (Carmit) and paints (Nirlat).

As part of the offer to sale, Overseas Commerce's CEO Motti Glick and CFO Moshe Revivo will also sell some of their holdings; Glick and Revivo hold options on 1.5% of the company's capital, most of them held  by Glick. The company plans to launch the offering in December, after a road show of about two weeks and a half.

The bonds, totaling NIS 100 million, have been rated A2 with a stable outlook by Midroog.

Overseas Commerce was founded exactly 49 years ago, in November 1969, and deals with "the provision of overall, 'port-to-shelf', logistic services using container and cargo terminals and bonded warehouses (under customs supervision)," and using "logistic warehouses for diverse logistic operations (including temperature control) of imported cargo after its release from customs, or of local produce." Last year, Overseas Commerce founded a company that will coordinate its operations in Ghana, Africa. It has signed several agreements to rent a lot and build a container terminal around the primary port in the Ghanaian city of Tema, but is yet to start operational activity there. Overseas Commerce operates in the Ashdod port, Airport City (near Ben Gurion Airport), Ben Gurion Airport and the port of Haifa; it has 360 employees and its CEO, Gillon Beck, is a FIMI partner. The company's financial statements indicate that in the first three quarters of 2016, its revenue was up 10%, to NIS 208 million, while its profits jumped 32% to NIS 16.5 million.

Published by Globes [online], Israel business news - www.globes-online.com - on November 21, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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FIMI's Ishay Davidi
FIMI's Ishay Davidi
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