The companies are engaged in overlapping sectors in infrastructure and BOT projects, in addition a given group provides full management and maintenance services and security. The purchase amount will range between NIS 90-120 million
Afcon Holdings has signed a memorandum of understanding to acquire 70% of a given group.
The consideration will be derived from the EBITDA of each of the acquired companies for 2021, with additional adjustments based on a set formula, with the consideration for 70% expected to amount to NIS 90-120 million.
The expected completion of the transaction is in April 2022, subject to the signing of a detailed agreement and receipt of all approvals required for the execution of the transaction.
In addition, at the end of 36 months from the date of completion of the transaction, Afcon will have the right to oblige the sellers to sell it the balance of their shares in all companies (call option) and the sellers will have the right to oblige the company to purchase the remaining shares in all companies (put option). Afcon will be entitled to pay for the exercise of the options in the company’s shares at a discount determined compared to the market price of the share at the time of exercise.
The parties set out the principles to be included in the detailed agreement, including the composition of the companies’ board of directors, the votes on the board of directors and the general meetings; A list of issues on which decisions will require a special majority, such as the protection of the rights of sellers as a minority in companies; The manner of management of the companies, BOT transactions, dividend distribution, non-competition, financing of the companies by the shareholders; Conflict resolution and more.
Daton Group, combines a number of operating companies that provide a basket of services in the field of management and maintenance under one roof. The group specializes in infrastructure and BOT projects. The group’s services include: management, maintenance, cleaning, security
Israel Reif, Chairman of Afcon Holdings: “I welcome the signing of the Memorandum of Understanding, as part of which Afcon will acquire 70% of a given group, which is significant and strategic for us. “We will also help deepen the relationship with them. We are constantly working to identify significant business opportunities for the company, which will help expand the scope of products and solutions we offer our customers and maintain our position as a leading player in the field.”
Yaron Krisi, CEO Afcon Holdings: “The deal is the implementation of Afcon’s strategy to increase its offering to its customers. Daton Group is one of the oldest and leading groups in the IFM field. This is another significant step for the company to promote its business and expand its activities, Daton will contribute greatly to our customers and strengthen the group’s status. We are constantly working to locate complementary activities and expand our activities. “
Hezi Nural, Founder And owner of Group Given: “I am happy and welcome the business partnership between the Daton Group and Afcon Holdings, which is a strategic partner for the Group’s activities. For the challenges of the future. The synergy between the companies will include the existing management backbone of the group and its employees.