The biggest land auction in the country, the tender for the former wholesale market site in Tel Aviv, has reached the final straight. This afternoon was the final deadline for submitting bids, and it is still not clear who will win. What is certain though is that at least one winner can already be picked out: Tnuva Food Industries Ltd., controlled by Apax Partners and Meir Shamir-controlled Mivtach Shamir Holdings Ltd. (TASE:MISH), which owns 60% of the land.
According to capital market estimates, the land being sold is valued on Tnuva's books at about NIS 1 billion, whereas the intention is to sell it for NIS 3-4 billion. If the lad is indeed sold at such a value, the milk products company will be bal eto record an impressive capital gain of some NIS 1.5 billion.
Assuming that Tnuva distributes the entire profit to its shareholders as a dividend, Apax Partners, managed by Zehavit Cohen, and Mivtach Sahmir, controlled by Meir Shamir, will already be able to crown the acquisition of control in Tnuva a success.
Nearly two years ago, Apax and Mivtach Shamir bought 76.7% of Tnuva for NIS 2.88 billion. Apax holds 56% and Mivtach Shamir 20.7%. The rest of the shares remain in the hands of the kibbutzim and moshavim, which sold the controlling interest.
Published by Globes [online], Israel business news - www.globes-online.com - on November 26, 2009
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