Published On: Mon, Feb 10th, 2014

Israeli Tnuva Food Industries sale To China’s Bright Food Group Moves Closer

China’s Bright Food Group will carry out due diligence on the Israeli food company.

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The sale of  Tnuva Food Industries Ltd. to China’s Bright Food Group Co. has moved into high gear. Representatives of Bright Food will arrive in Israel in a few days to carry out due diligence on Tnuva, the company told the board of directors at its last meeting two weeks ago. Tnuva’s value for the deal is expected to be NIS 8 billion ($2.3 billion).

Granot Central Cooperative Ltd. chairman Itzik Bader told “Globes” that no meeting had been scheduled with Bright Food’s representatives. “We do not oppose a sale. We were notified at the board of directors that Bright Food will come to carry out due diligence. Just as we said that we assume that there will be no IPO without us, we also assume that there will be no sale without us.”

Tnuva logo

“Globes”: Apax Partners can sell its shares without you.

Bader: “But I am not sure that a buyer would want to buy without reaching agreements with us.”

They can close a deal and then meet you.

“I doubt that that will happen. Let there be no mistake, we don’t oppose a sale. We only want terms that suit us regarding the way Tnuva is managed.”

Apax has sought a high valuation for Tnuva, while you and Mivtach Shamir Holdings Ltd. (TASE:MISH) have sought a lower valuation. If there is a sale, you cannot ask for a higher price for your shares.

“If we sell, we’ll ask for what they are paying. If we stay, we’ll stay because we think that it will be good for us to stay.”

Shares in Mivtach Shamir are up by more than 4% on the Tel Aviv Stock Exchange this morning.

 

Published by Globes [online], Israel business news – www.globes-online.com

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