The Egged transaction is being approved by the shareholders. The Keystone tradable infrastructure fund transferred NIS 350 million to the trustee’s account, an advance that was required to be paid for the purpose of advancing the acquisition of the company at a value of NIS 4.77 billion.
In addition, the fund completed a financial closure with Bank Mizrahi Tefahot and Bank Leumi for a credit facility of NIS 1.5 billion to finance the required payment. The Keystone Fund acquires up to 60% of Egged’s shares, and the next meeting of Egged’s shareholders is expected to take place towards the end of May.
Tonight, Egged CEO Avi Friedman sent a video to the company’s 1,300 shareholders, noting that for him this is an exciting and historic event.
Globes has learned that Egged is expected to hold the meeting digitally, using zoom software or a similar app. Prior to the meeting, a unique information room will be opened for shareholders and an information campaign will be held to present the details of the transaction.
Navot Bar, CEO of Keystone: “Public transportation is one of the critical national infrastructure industries for the functioning of the economy, and its importance for the development and growth of the Israeli economy is growing. Despite the benefits of investing in infrastructure, until recently these investments were reserved only for a limited and concentrated number of players. “Investing in national and quality infrastructure like Egged is now becoming accessible to the general public through Keystone.”
The demands made by Egged’s management immediately after the results of the competition were published were acceptable and understandable to Keystone, and evidently Keystone was able to meet them and prove its capabilities in a very short time. Keystone brings with it Egged’s financial strength and strategic capabilities that will ensure the continued development and leadership of Egged, which will benefit Egged, the public, its shareholders and Keystone investors. “
Keystone, managed by Navot Bar, which invests in infrastructure assets, reports today (Sunday, May 8, 2022) that in accordance with the terms of the competitive procedure for purchasing Egged shares and the letter of conditions received by Egged to declare it a winner in the competitive process, a total of NIS 350 million was deposited in a trust account. Which is a down payment on account of the purchase of Egged shares. Keystone financed, from its sources (including by withdrawal from an existing credit facility) about 74% of this amount, with the balance provided by the Teachers’ and Kindergarten Fund for the purchase partner.
Prior to depositing the down payment, Keystone established a designated corporation for the purpose of purchasing Egged shares, which entered into a financing agreement with a banking consortium led by Bank Leumi and Bank Mizrahi, to which equity will be injected by the partners in the designated corporation. The financing agreement regulates the receipt of loans in the amount of up to NIS 1.44 billion, which constitutes the balance of the amounts required for the corporation designated to purchase Egged shares.
The designated corporation also signed the agreement to purchase 50.01% to 60% of Egged shares, which also includes put options for Egged shareholders to sell the balance of their holdings in it, according to the same company value according to which the consideration for Egged shares was determined, in accordance with the agreement.
In doing so, Keystone fulfilled all the conditions required on its part to declare it a winner in the competitive process.
In view of the completion of the conditions for the company to be declared the winner of the competitive process, Egged will convene a general meeting of its shareholders to approve the sale of Egged shares, in a manner that will take place by the end of May 2022. .
Attorneys Itai Geffen and Ronit Rosenstein-Barel of Gornitzky & Co., Tasc (Financial Advisers) and PwC accompany Kiston in the transaction.