A short time ago, Apax Partners won the Tnuva Food Industries Ltd. tender with an offer of $1.04 billion. Apax was one of five participants in the tender.
Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) raised its bid to $1 billion and the Yigal Ahouvi consortium came close to that figure, but rejected Tnuva’s restrictive conditions. The Mivtach Shamir Holdings Ltd. (TASE:MISH) consortium also bid $1 billion and agreed to Tnuva’s restrictive conditions, but is not prepared to raise it bid at this time.
Markstone Capital Partners Group LLC, which made the lowest bid of $850 million, and apparently will not raise it, is out of the running.
Tnuva placed especially restrictive conditions on the bidders in order to make it difficult to sell its real estate. The bidders were asked to sign an agreement, the violation of which would involve a $10 million payment, under which they could not use Tnuva’s shareholders’ equity for ten years.
Apax is one of the world’s largest private equity firms, active in the US, Europe, and Israel, with $20 billion under management. Apax Israel has invested $450 million in 40 companies. In 2002, Apax allocated $600 million for investment in Israel. Apax Israel has undergone far-reaching changes in the past year, following a decision to scale back activity in Israel and focus on investment in large companies. In addition, Zehavit Cohen was appointed general manager of Apax Israel. She previously served as CFO at IDB Holding Corp. Ltd. (TASE:IDBH).
Published by Globes [online], Israel business news - www.globes.co.il - on November 20, 2006
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