Israel’s Largest Food Wholesaler Finally Going Chinese for $2.14 Billion

The sale represents a huge profit of $1 billion after dividends, tax free, for Apax

Tnuva Cow

The sale of controlling interest in Israel’s largest food concern Tnuva by Apax Partners (56.7%) and insurer Shamir (about 21%) to the Chinese food giant Bright Food at close to $2.14 billion will finally be closed on March 30, 2015, The Marker reports.

The deal will go through following more than a year and a half of contacts, and after Bright Food informed Apex and Shamir it had received the necessary regulatory approvals from China to complete the transaction.

Most of the financing for the Bright Food transaction will come from the company’s own equity (80%), with the rest coming from financing by foreign banks.

The sale represents a huge profit of $1 billion after dividends, tax free, for Apax, which is run in Israel by Ze’havit Cohen. Shamir will earn $300 million.

Tnuva experienced a drop of 40% in profits in Q4 2014, mostly due to government imposing price controls on some of its most popular products, including 5% white cheese and 38% sweet cream. Those price controls also imposed a 1.1% price reduction on some products.

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