Delek Group Ltd. (level:massage) has a 44.5% stake in Mehadrin Ltd. (level:Maiden) to Discount Investment Company Limited (level:completely). Delek Group has returned its holdings in fruit and vegetable grower and exporter Mehadrin, three years after it was forced to sell its stake due to an acute liquidity crunch during the Covid pandemic.
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Delek, which pays NIS 168.44 per share, a 33% premium to yesterday’s closing price, will become the controlling shareholder of Mehadrin. Delek, which is controlled by Yitzhak Tshuva and managed by CEO Idan Wallace, sees Mehadrin as an attractive asset not only because of its farming activities but also because of its extensive land holdings, which include 11,000 dunams (2,750 acres) around Israel and an additional 196 dunams. (49 acres) privately owned. Mohadrin also owns a range of logistical assets including refrigeration plants, packing centers and logistics centers in Israel and abroad.
Wallace said: “We see Mehadrin as a company with great potential for promotion due to the huge size of the fields and land reserves it owns, which it owns under long-term lease agreements and which are located in demand areas in the State of Israel.”
He added, “The transaction was completed under optimal conditions for the Delek Group based on its available resources, without incurring debt or increasing leverage, and in effect allowing the group to take advantage of the business opportunity.”
Published by Globes, Israel business news – en.globes.co.il – on July 17, 2023.
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