Board of Directors Shufersal Announced that it was rejecting a fuel offer to merge and purchase shares of the company. “The board of directors has decided that the proposal is not in the company’s favor and does not comply with the strategy of Shufersal and its shareholders,” the report said.
On Tuesday, the chairman announced Yaki and Damani Informed Shufersal board members of the termination of his position, after it was decided not to recommend him for another term. In practice, this is a dismissal, with attempts by various bodies to take over the company in the background.
Delek Israel is controlled Blade L.R. Offered on April 5 to merge into Shufersal In a share exchange transaction in which Delek Israel will receive about 20% of Shufersal’s shares, and will become the largest shareholders in the company (but not the controlling shareholders). Delek Israel owns Lahav LR (40%), Uri Mansour (35%) and the Delek Group (25%).
The Phoenix Group sent a letter to Shufersal’s board of directors, calling for a postponement of the examination of the proposal, at least until Shufersal’s administrative backbone stabilizes. Following an audit, Shufersal stated that the chairman and Damani and three other directors of the company would not participate in discussions held by the board regarding various investment proposals received or will be received by the company.
Reasons for rejection: Work on Saturday and uncertainty in the industry
Among the reasons for rejecting the request was that the company’s strategy and vision have always been that its retail activities will suit the nature and shades of Israeli society as much as possible and will not hurt the feelings of a particular public. “Beyond not adapting to this strategy, since Delek Israel operates hundreds of branches and stores on Saturdays and Israeli holidays, past experience in competing retail chains shows that deviating from this principle may even lead to economic harm to the company’s food retail business,” it said.
It was also noted that in the industry in which Delek Israel operates, there is a great deal of uncertainty, including due to the increase in the use of electric vehicles. ” “This will lead to the company and therefore it does not comply with the company’s strategy.” In addition, it was noted that Delek Israel’s activity includes significant risks that do not comply with the company’s risk policy.
“According to the offer, the exchange ratio will be determined according to valuations made to the company and Delek Israel and the offer did not include any reference to the payment of any premium (even for a material effect on Delek Israel shareholders), even though the merger will result in Delek Israel shareholders The deal has the largest shareholders in the company with a holding rate of about 20%. The exchange and in exchange for a share to be paid by them, “the members of the board of directors concluded.