Shlomi and Yossi Amir are set to become the new controlling shareholders of Shufersal Ltd. (TASE:SAE). The large institutional investors, which hold a 64% stake in Israel’s biggest supermarket chain, have opted for the bid of the Amir brothers, who had previously set up the Freshmarket supermarket chain, before selling it to Paz in 2021.
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In the deal, the Amir brothers will buy 40% of the holding of the institutional investors at a company valuation of NIS 6 billion for Shufersal, for a controlling stake of 24.9%.
Earlier today the deadline for accepting the Amir Bros bid expired. Five of the six institutional investors Migdal, Clal, Menorah Mivtachim, The Phoenix and Altshuler Shaham agreed to accept the Amir brothers bid, while Harel consulted with advisors before falling into line.
The institutional investors preferred the Amir brothers bid to that of the Zwi Williger-Delek Israel consortium, even though the latter valued Shufersal at NIS 6.5 billion, NIS 500 million more than the Amir brothers. There was also a concern that selling to Zwi Williger, who owns food importer Willi Food International, could result in regulatory problems with the Israel Competition Authority.
A US consortium led by businessman Michael Alpert also bid for control of Shufersal at a company valuation of NIS 6.1 billion but dropped out of the race earlier this week.
Shlomi and Yossi Amir expanded a family grocery store in Nesher near Haifa into the Freshmarket supermarket chain, which they sold to Paz in 2021 for NIS 2.1 billion. They signed a non-competition agreement with Paz, which is not due to expire until the start of 2025 but Paz has agreed to shorten the agreement in exchange for NIS 100 million compensation.
Published by Globes, Israel business news – en.globes.co.il – on February 13, 2024.
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