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Just a few days ago, the huge acquisition of Egged by the Migdal Insurance Group, Kerso Motors, the Aluma Fund and the teachers ‘and kindergarten teachers’ pension funds was announced for NIS 2.8 billion for control of the company (more than half of 50.01%).
The partnership now announces that Egged has raised its demands and therefore the deal is delayed although it should be noted that it may explode completely but the announcement includes a reservation on the possibility of renegotiation if Egged withdraws from the terms.
More in-
According to the Aluma Fund’s announcement: “As part of a notice given to it in writing, Egged included a number of conditions that constitute a change from the outline of the purchase transaction. The fund and its partners informed Egged that the new terms are not acceptable. “Competitive for the winning of the fund and its partnerships or for the final terms in which the parties will enter into a binding agreement, if any.”
Aluma further wrote that “the fund will again report on any material development in relation to the competitive process, in accordance with the provisions of any law.”
As you may recall, according to Egged’s announcement, the partnership had two and a half weeks to transfer 15% of the winning amount to ensure its winning and ensure its seriousness. We were transferring NIS 420 million until April 25. To this – collapsed Motors, Migdal Insurance Company and the Aluma Infrastructure Fund, the partners that won Egged’s tender, refuse and that this is a new demand from Egged last Friday.
Egged, on the other hand, is demanding this as a condition, and that if it does not, the offer will go to the Keystone Fund, which offered to purchase Egged at a value of NIS 4.6 billion. The partnership proposed, as will be recalled, to acquire Egged at a value of NIS 5.6 billion – meaning: transferring NIS 2 million to each of Egged’s 1,300 shareholders.
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