In a surprise development in the saga of holding company Alon Blue Square Israel, Gad Zeevi, who recently won a huge lawsuit against the banks, made an official and detailed offer to buy control of Alon Blue Square, through an injection of capital amounting to NIS 500 million directly into the company, in exchange for 85% of its shares.
Sources inform "Globes" that the offer was sent to Alon Blue Square chairman Avigdor Kaplan yesterday, who forwarded it to the trustees of the company's bonds, after the bondholders meeting that took place yesterday afternoon.
Zeevi proposes an immediate injection of NIS 250 million into Alon Blue Square, and a further injection of a similar amount a year later, with the valuation of the company before the investment being its average market cap for the month of January, which is about NIS 80 million.
In the past few months Zeevi has become very liquid after receiving more than NIS 250 million from the banks after winning a lawsuit he filed against them for charging extortionate penal interest rates on arrears of a loan they g=had granted him for the purposes of buying control of Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ).
Alon Blue Square owns 54% of Blue Square Real Estate (TASE: BLSR), which has a market cap of NIS 833 million, 63% of fuel stations company Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL) worth NIS 333 million, and 78% of homeware company Na'aman, worth NIS 31 million. Alon Blue Square also held supermarket chain Mega, which recently obtained a stay of proceedings and had a trustee appointed to run it.
Published by Globes [online], Israel business news - www.globes-online.com - on February 4, 2016
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