Electra Consumer Products Company reported that it is promoting the raising of 200 million shekels, about half from banks and about half from its shareholders, for the purpose of launching and converting 40-50 branches of the Beitan Wines subsidiary to branches of the French Carrefour chain in Israel. The network is managed by Uri Kilstein.
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The company states that the investment plan appeared in the financial statements of the third quarter published a few days ago, and now it is attaching more details. Beitan Wines has already started importing chocolate products and other products that compete with the traditional product manufacturers. According to the announcement to the stock exchange, this is, among other things, part of the efficiency program of Beitan wines. The conversion plan for Carrefour branches will be completed in the first half of 2023.
At this stage, the final financing conditions have not yet been agreed upon with the banks, and Beitan Wines is conducting negotiations with them. It was also reported that within this framework, Electra will make an investment of NIS 40 million in the equity capital of Beitan Wines, from its own sources and according to its relative share (35.5%).
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The amount of the company’s final investment will be determined depending on the participation rate of the other shareholders in Beitan Wines, including the Phoenix Group, which owns 15% of its shares, Nahum Beitan, the company’s founder, who owns 36% of the shares, and the creditor banks, including Bank Hapoalim and Bank Mizrahi Tefahot (10 %).