Meitav Dash down on XIO dispute

Ilan Raviv Photo: Eyal Yizhar

A Chinese billionaire is accusing the XIO fund, due to buy Meitav Dash, of denying his holdings in it.

The Meitav Dash Investments Ltd. (TASE:MTDS) share price was down 12% in morning trading on the Tel Aviv Stock Exchange following a dispute in the XIO fund, which is acquiring Meitav Dash. In late 2016, Meitav Dash reported that following several months of negotiations, it had signed a binding agreement for XIO, a global fund, to acquire all the shares in Israel's second largest investment house at a company value of NIS 1.48 billion (NIS 22 per share), reflecting a 60% premium on Meitav Dash's market value before the deal was reported.

It is now reported that a Chinese billionaire is accusing the XIO fund of denying his holdings in it.

Meitav Dash today reported to the Tel Aviv Stock Exchange (TASE), "The XIO group has notified the company that the accusations leveled against some of XIO's managers are false, that they have been categorically rejected by XIO, and that as one of its managers was quoted as saying, the claimant is not an investor in XIO, and never invested in it. XIO adds that it has rejected all the accusations leveled against some of its managers, that it is dealing with them in court, and is convinced that the righteousness of XIO and its managers will be proven in court."

Meitav also stated that XIO had explained that its submission of the announcements and requests to the regulatory authorities aimed at obtaining approval of the deal and control permits had been delayed up until now "in view of XIO's wish to complete its investment structure, which is likely to include the addition of a well-known international partner that brings with it specific expertise in asset management and the Israeli market. XIO confirmed to the company that it is still working on the preparation of the notifications and requests."

Meitav Dash CEO is Ilan Raviv.

Published by Globes [online], Israel Business News - www.globes-online.com - on March 19, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Ilan Raviv Photo: Eyal Yizhar
Ilan Raviv Photo: Eyal Yizhar
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