XIO Group granted extension for Meitav Dash acquisition
Ilan Raviv Photo: Eyal Yizhar
Israeli startups raised over $1b in April
Israeli startups raised over $1b in April
International fund XIO Group announced that it would set up a special fund for the deal to make it easier to obtain regulatory approval.
Meitav Dash Investments Ltd. (TASE:MTDS) has announced that despite what it regards as a breach of the terms of the deal for its acquisition by international fund XIO Group, it has extended the deadline for XIO Group to present the relevant documents for completing the deal to the Israeli regulator.
XIO Group, two of whose most senior partners are in civil legal proceedings, will set up a special purpose fund for the acquisition in order to make it easier for the Israeli regulators to accept the deal. The parties were concerned that because of the legal proceeding and general suspicion of any fund with a connection to China, there would be problems in obtaining regulatory approval for the deal. A special purpose fund with its own corporate governance separate from the parent company is likely to contribute to obtaining the required Israeli regulatory permits.
In order to meet the new deal terms, Meitav Dash is giving XIO Group 75 additional days (until August 21) to submit the relevant documents to the Israeli regulator. If the documents are submitted by that date, the deal for the sale of control in the investment house to XIO Group will be back on track, leaving its fate in the hands of the regulator.
Published by Globes [online], Israel Business News - www.globes-online.com - on June 8, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017
Ilan Raviv Photo: Eyal Yizhar