The Yohannoff company announced that it will purchase from the house of the controlling owner, Eitan Yohananov, the equipment of a store belonging to his daughter for NIS 1 million plus VAT.
The company will purchase the stock of products in the store that covers about 200 square meters in Migdal Psagot in Tel Aviv, and this “in accordance with the fixed price list of the company as it works with its suppliers”, according to Yochananoff’s announcement to the stock exchange.
From the reasons of the company’s board of directors, it appears that it is in the habit from time to time to open new retail stores, among other things, by purchasing equipment and entering into a lease agreement for a property and stepping in the shoes of the outgoing tenant. Beyond that, the expected return on investment, according to the board of directors, based on similar transactions in the area and those carried out by the company, it is evident that the price paid by Yohannoff public company is not higher than what is accepted in the market (and even lower than it). The board of directors believes that this is a transaction that is in the best interest of the company and will allow it to increase the volume of its activities.
What products are we talking about or is the store related to Yohannoff’s field of activity? This, for example, was not provided in the report and raises questions regarding corporate governance in public companies. Last week it was the Moore investment house that asked to send the controlling owner’s son to study in London but withdrew from this after the public criticism.