Infrastructure and Energy Investment Fund, Generation Capital , Signed an agreement to acquire full ownership in the Bon Tor transportation group at a value of NIS 650 million. The fund, managed by Yossi Singer and Erez Balsha, already owns 49% of the company’s shares – as part of its first investment. It will now pay its partner (and founder of Bon Tor) the Katz family about NIS 330 million for 51% of the share capital and will become fully owned.
The value reflected in the transaction is expected to decrease due to a dividend that will be distributed to Bon Tor shareholders prior to the completion of the transaction, which will amount to NIS 50-40 million. Generation’s initial investment in Bon Tor was made in the amount of NIS 100 million (as stated for about half of the company), so that the value after the acquisition of ownership will now be three times greater than the initial investment.
The fund stated in a report that it continues to maintain contacts with a number of investors interested in joining the deal. “However, even if an investor is not added by the time the transaction is completed and until its income, the fund will finance the transaction without the need to raise capital,” the company said.
Bon Tor expects revenue of NIS 1.2 billion this year
Bon Tor is considered one of the largest transportation groups in Israel, with a fleet of 1,600 vehicles and 2,000 employees. In January last year it completed the acquisition of full ownership in the metropolitan public transport company. The company operates in the field of public transportation and transportation and enjoys high operational efficiency. The company expects record revenues of more than NIS 1.2 billion this year and estimates that EBITDA will reach NIS 220 million.
The Generation Capital public fund manages a portfolio of assets totaling NIS 2.4 billion, and in addition to transportation, it also invests in electricity and renewable energy, natural gas distribution, logistics, water, wastewater and the environment. The company is traded on the Tel Aviv Stock Exchange at a market value of NIS 1.33 billion, having lost about 3% of its value since the beginning of the year. In the last three years it has recorded a return of 17%.
According to Erez Balsha, CEO of Generation Capital, “Bon Tor enjoys advantages for size, efficiency and high operational flexibility alongside significant and stable cash flow. The transportation market in Israel is expected to grow significantly in the coming years, among other things, due to significant investments in the field by the state in all segments, and Bon Tor is expected to benefit from this growth. “
Last month, the fund completed the issuance of a new series of bonds (Series C ). The issue recorded demand of about NIS 600 million, of which it chose to raise about NIS 490 million. In January it reported that it was taking over the garbage recycling company K.M.M. Recycling plants through its subsidiary GES, which signed an agreement to purchase 75% of KMM shares for approximately NIS 195 million. At the end of 2021, it signed an agreement yesterday to purchase 25.5% of the shares in the pumped storage facility in Ma’ale Gilboa from Electra for NIS 220 million.