Meir Shamir has gained more time to consider whether to sell his holding in Tnuva Food Industries Ltd. or to remain as a partner of Bright Food. Mivtach Shamir Holdings Ltd., which he controls, and which holds 20.7% of Tnuva, notified the Tel Aviv Stock Exchange this morning that the deadline by which it is due to inform Bright Food whether it is staying in Tnuva or selling has been extended to two months.
Last week, Apax Partners reported that it had reached agreement on selling its controlling stake in food company Tnuva to China's Bright Food at a valuation of NIS 8.6 billion for the company.
Mivtach Shamir has an option to sell its Tnuva holding on the same terms as the sale by Apax. In the two months given to it to exercise this option, Mivtach Shamir and Bright Food will negotiate to settle matters connected to cooperation between them as owners of Tnuva. If the negotiations result in agreement, Mivtach Shamir will not sell its holding, and will remain in Tnuva. Otherwise, within two months Mivtach Shamir will sell its holding in accordance with the terms of its tag-along option.
Mivtach Shamir's notice states, "The intention of the parties is to work together, and together with the kibbutzim that also hold rights in Tnuva, and to collaborate in the Israeli and Chinese markets, and in other international markets."
Published by Globes [online], Israel business news - www.globes-online.com - on May 25, 2014
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