Meitav Dash warns XIO on deal violation

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

Overseas investment fund XIO has 20 days to rectify the violations in the acquisition of Meitav Dash.

Meitav Dash Investments Ltd. (TASE:MTDS), controlled by the Stepak family and Eli Barkat, today sent the XIO investment fund a letter warning it that it was in violation of the agreement for the acquisition of Meitav Dash. The letter said that the deal would be called off unless the violations are rectified. The buyers have 20 business days from now (until the beginning of June) to rectify the situation.

Sources associated with XIO today expressed disappointment that the Meitav Dash owners had lost patience, but made it clear that they were not abandoning the deal, were committed to it, and were making every effort to go forward with it and complete the process of obtaining approval from the Capital Market Authority (a process that has not yet begun). Meitav Dash wants to exert pressure on XIO to complete its handling of a lawsuit against it taking place overseas. Meitav Dash probably also wants the purchasing group to expand through the addition of another party, which will make it easier to obtain regulatory approval for the deal in Israel.

As of today, Meitav Dash's market cap was NIS 961 million, following a 19% drop since the beginning of the year. The initial agreement with XIO for the acquisition of Meitav Dash, managed by CEO Ilan Raviv, was signed in August 2016, followed by the signing of a binding agreement in November. These agreements between the parties stipulated that as part of the deal, the global fund, which includes Chinese partners, would acquire all the shares in Meitav Dash at a NIS 1.48 billion value (NIS 22 per share, 55% higher than the current market price).

Published by Globes [online], Israel Business News - www.globes-online.com - on April 27, 2017

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

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