The sale of 50% of the shares in Fishman Networks, which has been on the table for about a year, is again delayed, and this time due to Bank Hapoalim’s opposition to the sale of the shares to the children of the bankrupt businessman Eliezer Fishman (holding the remaining shares in Fishman Networks).
Bank Hapoalim, one of Fishman’s largest creditors, opposes the deal despite a recent settlement reached between Adv. Yossi Benkel, the court’s trustee in Fishman’s bankruptcy ‘ For NIS 165 million, as part of a mediation conducted by the former president of the Tel Aviv District Court, Judge (retired) Eitan Orenstein.
Eyal Fishman The son of Eliezer Fishman / Photo: Shlomi Yosef
As far as is known, the price was determined following the exercise of a right of refusal by the Fishman family following an offer submitted by the Fortissimo Fund to acquire full ownership of Fishman Networks for NIS 330 million – an amount from which the Fishman family’s offer to purchase 50% of the shares was derived.
Adv. Benkel intended to submit the agreement for the sale of Fishman Networks shares to members of the Fishman family last month for approval by the court, after completing the additional procedures that were required, including the approval of Bank Hapoalim, as stated by Fishman’s large creditor, which has not yet been received. Satisfied with the extent of the consideration in the transaction, and requires additional information on the subject, including a valuation of Fishman Networks that has not yet been provided to him.
The most significant asset left to the family
The Fishman family currently owns 50% of Fishman Chains’ shares, and if they get the court’s approval to purchase the second half, they may consider bringing in partners to the deal. Adv. Benkel originally offered the shares for sale to new investors, through the Valio Base investment house, when the Fishman family was given an option to join the deal and also sell their share in the company, but they preferred to exercise their right of refusal.
Fishman Chains shares are probably the most significant asset left for the Fishman family following the bankruptcy of Eliezer Fishman, which was officially declared in 2017 and was then estimated as the largest in Israeli history, with debts amounting to NIS 4 billion (of which NIS 1.5 billion was returned to creditors to The estimates)
As part of a mediation agreement signed in 2020 with the family members, Fishman’s creditor banks (Leumi, Hapoalim, Discount and Mercantile) waived 5% of Fishman Networks’ shares in favor of the family members, raising the latter’s holdings to 50%. The banks also agreed to change the company’s bylaws and give the family an equal number of directors – which increased the family’s power and ability to control the sale process.
The assets and activities held by Fishman Networks
Fishman Chains’ main activities include the Zer For You flower chain (ZER4U), the Toys R Us and Red Pirate toy chain, the non-bank credit card company Power Card and the pharmacy and pharmaceutical trade through Telepharma and Telepharm. As previously revealed in Globes, these activities together generated Fishman from French revenue networks valued at more than NIS 500 million in the year 2020.
Another key asset of Fishman Chains is about 25% of the shares of Globrands, a company that markets smoking products, sweets and snacks, which is traded on the stock exchange at a market value of about NIS 540 million. This holding, with a current market value of approximately NIS 135 million, is also included among the assets sold under the company.
Fishman Chains also owns about 10% of the “Do It Yourself” Home Center chain, which are not intended for sale, and which will be distributed as an in-kind dividend between the banks and the Fishman family. In addition, Fishman Networks owns the Mega Sport sports equipment chain, which is in a sale process subject to the approval of the Competition Authority, so that this activity will also not be included in the implementation of the Fishman Networks in question.
*** Full disclosure: Eliezer Fishman is the previous controlling owner of Globes Publisher Press – the owner of Globes.