Melisron Ltd. (TASE: MLSR) and the Antitrust Authority have reached a compromise on the company's takeover of British Israel Investments Ltd., removing the final obstacles to the merger of the two mall owners.
Under the deal with Antitrust Authority director general David Gilo, Melisron will sell the Rananim Mall in Ra'anana, the Savionim Mall in Yehud, the Harel Mall in Mevasseret Zion, the Hadar Mall in Jerusalem, and the North Mall in Nahariya. However, it will be allowed to keep the Grand Canyon Mall in Haifa, and not sell it as originally demanded by Gilo's predecessor, Ronit Kan.
Melisron, controlled by Ofer Investments Ltd., acquired the 55.8% stake in British Israel held by Leo Noe and the 15.7% stake held by Pujo Zabludowicz in a share-swap deal at a company value of NIS 2.4 billion. It subsequently made a successful offer to purchase and delisted the company from the TASE. The Antitrust Authority approved the merger, provided that the two companies sell some of their malls, offering various alternatives, but required the sale of the Grand Canyon Mall.
Ten months ago, Melisron appealed the Antitrust Authority's decision with the Restriction of Trade Tribunal. Yesterday, the parties reached a compromise outside the court. They petitioned the court to approve the compromise.
Under the compromise, Melisron will sell the Rananim and Savionim mall within nine months from the completion of the merger with British Israel last Tuesday, and will sell the North Mall and Harel Mall by April 1, 2013, and December 31, 2013, respectively. If Melisron fails to sell the malls by the deadlines, it will give irrevocable power of attorney to a trustee appointed by the Antitrust Authority to sell them.
Melisron's share price fell 0.5% by midday today to NIS 66.39, giving a market cap of NIS 2.6 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on March 29, 2012
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