Big Shopping Centers (2004) Ltd. (TASE:BIG) and Mega Or have improved their joint offer to purchase the shares of Blue Square Real Estate. The two companies have submitted an offer to buy 54% of Blue Square Real Estate (TASE: BSRE) at a valuation of NIS 1.7 billion, after making an offer at a valuation of NIS 1.65 billion on Thursday last week. Blue Square Real Estate currently has a market cap of NIS 1.3 billion, so that the offer carries a premium of 30%.
The offer is one third by Mega Or and two thirds by Big Shopping Centers. The deadline for acceptance has been extended to January 19 at 5 pm. There is no change to the other conditions of the offer. If the offer is accepted, Big Shopping Centers and Mega Or will pay Alon Blue Square Israel (BSI) NIS 900 million for control of Blue Square Real Estate.
The improved offer for Blue Square Real Estate comes on the day that its sister company Mega (not related to Mega Or) is filing a petition for a stay of proceedings and the appointment of a trustee. Parent company Alon Blue Square had apparently prepared earlier for the petition for a stay of proceedings.
A statement by the Alon Blue Square board of directors says, "In the petition to the court to be filed within the coming hours, Mega will ask for the appointment of an official on behalf of the court and that the chain's stores should be allowed to continue operating using the company's existing cash and stock until a worthy buyer is found by means of which the chain will continue to operate together with its dedicated workers and will continue to be a competitive player in the retail market."
Published by Globes [online], Israel business news - www.globes-online.com - on January 17, 2016
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