Menorah Mivathim Holdings reports today that it has increased its holdings in ERN to 70%, thus expanding the group’s financing arm.
The ERN company is the leading company in Israel in providing a commitment to pay checks and standing orders for businesses and also operates in providing consumer loans to businesses through its subsidiary Maimon Baklik. The total investment scope of Menorah Mivathim in ERN is about 190 million NIS, according to a value of 600 million NIS, after the money.
As part of the transaction, Menorah Mivathim Holdings will invest 60 million NIS in the company at a value of 600 million NIS, after the money. At the same time, Menorah Mittehim will purchase another 15% of the company’s shares from the Nathanzon family for NIS 90 million and will also exercise an option to purchase an additional 10% from Tanzon under the agreement from 2016 in exchange for 38.5 million NIS. After the deal, Menorah Mittehim Holdings will own 70% of the company and the Nathanzon family 30% Roni Nathanzon will continue to be the chairman of the company for the next five years. In 2016, Menorah Mivathim acquired 40% of ERN at a company value of NIS 250 million, and after increasing the holdings to 70%, the group will record a net profit between NIS 80-100 million.
In addition, the company intends to launch a public offering at a value not less than NIS 600 million before the money.
Ari Kalman, CEO of the Menorah Mitvathim Group: “The connection between the Menorah Mittehim Group, Roni Nathanzon and ERN is a winning connection that has proven itself in recent years. The strengths of the Menorah Mittehim Group, alongside the capabilities of ERN, lead the company to a boom in activity and success while impressively increasing the scope of activity and profitability. Increasing the holdings of the Menorah Mittehim Group will allow ERN to continue the momentum of growth and action as mentioned”.
Roni Nathanzon, chairman of the company: “The company that was established about 23 years ago as a check payment guarantee company is considered a “groundbreaker” throughout its history and enables all levels of the Israeli population to purchase products and services at businesses throughout the country. The company that was established during the Second Intifada in order to create jobs for Israelis in the country quickly became Over the years it has grown from a family company to the leading company in Israel committed to payment methods and their financing in businesses throughout the country. Today the company serves as an operational platform for a wide variety of payment methods and their financing. In light of its size and importance and for the good of the future of the company’s employees and its customers, I decided that the time had come to bring it to “Hoof Mvittaim” and transfer control to Menorah The holdings are insured so that it will be a future anchor for the continuation of its path, its success and its activities in the future.”
Shai Preminger CEO ERN: “Increasing the holdings of Menorah Mivathim to 70% in the ERN company expresses a great expression of confidence in the company, in its business activity and in its future in all areas of its operation: a commitment to pay checks and their financing, standing orders and their financing and the provision of consumer loans. The proceeds of the issue will be used by the company to continue its growth and expansion As it has been in recent years.”