The employees will receive NIS 137 million in extra pay after the sale to Bright Food.
Tnuva Food Industries Ltd. employees and representatives of the owners Apax Partners and Mivtach-Shamir Food Industries Ltd. (TASE:SHAM) have reached an agreement by which the employees will receive a bonus of NIS 137 million. The employees will end their disruptions and resume full production.
The money will be paid after the sale to the Chinese government's Bright Food Group is completed. Last week an agreement was signed by Apax to sell its 56% stake in Tnuva to Bright Food at a company value of NIS 8.6 billion.
Meir Shamir has yet to decide if he also wants to sell his stake to Bright Food.
Meanwhile Tnuva published its first quarter results this morning. Net profit fell 3.1% in the first quarter of 2014 to NIS 86 million from NIS 89 million in the corresponding quarter while revenue was down 1.8% to NIS 1.72 billion over this period. The company blamed the fall in profits on the rise in companies tax with gross profit actually up 6% over this period to NIS 483 million. Operating profit was unchanged at NIS 132 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 29, 2014
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