The businessman Aharon Frankel decided to stop the contacts to acquire the control ofShufersal . In a conversation with Globes, he said that he decided to withdraw from the move, in light of the disagreement among the institutionalists. “We need a positive consensus from everyone and want to manage the company with a high hand for the benefit of the company and the shareholders,” he said.
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“This is not a simple move, but requires the dedication of many resources of time and energy, and an investment of approximately NIS 1.25 billion. For such a move we need the full backing of all the institutional bodies, 75% of which value us and trust us, but two of them (Migdal and Menorah), for reasons of their own, objected. After consultation, we decided in an informed decision, that we do not continue the contacts, and we wish the company success.”
Yesterday it was revealed in Globes that the agreement drawn up by the five institutional bodies with Frankel is expected to include two special clauses. One clause that states that if Frankel sells the share of Shufersal shares that he will buy to another large entity, the entities will share with him the profits that will be generated for him. The second section is more specific to the case where Frankel will actually buy more shares, most likely from a Migdal company that is not a partner in the emerging agreement. If Frankel buys shares at a higher price, here too a special mechanism will come into effect that will compensate the institutions for the higher price at which the shares will be purchased.
Six institutional bodies currently own about 60% of Persal. Five of them (Altschuler Shaham, Harel, Fenix, Menorah and Kalal Insurance) conducted the talks with Aharon Frankel for the sale of about a fifth of their holdings. Migdal is not a party to the ongoing negotiations and is not interested in selling the shares, because it believes that the price offered in the transaction (NIS 25 per share) is too low. Shufersal’s share has risen by more than 10% in the last two weeks and is currently trading around NIS 24, not far from the price it was at The deal with Frankel should be done.
In the past year, quite a few volatile decisions were made by Shufersal’s board of directors. The directors supported the chairman Yikki Wadmani and allowed him to push out the CEO Itzik Abarkhan, they supported him in the appointment of the CEO who wanted Ofer Bloch. Two months later and Damani had already finished his career there and Abarkhan was brought back, this time as chairman, and then Bloch was also pushed out And a CEO was appointed to choose Abarkhan.
Last week Shufersal, which is the largest food retail chain in Israel, revealed its efficiency plan, as part of which about 25 branches will be closed, about 12 employees will be fired and administrative expenses will be reduced, which should save the company about NIS 250 million.