Business Post: Tnuva buyer to be chosen next week

Sale of controlling interest in the dairy cooperative to Apax Partners made for $1.105 billion.

By YA’AKOV HECHT
January 25, 2007 22:34
1 minute read.
Business Post: Tnuva buyer to be chosen next week

Tnuva milk 88. (photo credit: )

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

The purchase of Tnuva is entering the homestretch, and opinion is that the buyer's identity will be determined next week. The Apax Investment Fund, which won the tender to acquire the company, has encountered difficulties in completing the purchase, due to the dairy farmers' vigorous opposition. Businessman Meir Shamir continues preparing to gain full control of the company, whole at the same time engaging in contacts with Apax, in an attempt to acquire control with it. TheBpost has learned that contacts between the parties are expected to reach conclusion by the end of the coming week. Last November, Tnuva's Tenders Committee decided to sell the controlling interest in the dairy cooperative to Apax Partners for $1.105 billion. More than a year-and-half ago, Apax, one of the world's largest private equity investment funds, was a partner in acquiring the controlling interest in Bezeq, along with businessman Haim Saban. Apax's acquisition of the controlling interest in Tnuva is supposed to receive approval from Tnuva at its general meeting, to be held next month. Members of the general meeting include representatives of 620 moshavim and kibbutzim, and approval for sale of the controlling interest will need to win the consent of 75 percent of the members. Last week, Shamir began negotiations with Apax, after his contacts with the dairy producers reached an impasse. The dairy farmers and milk producers are interested in preventing the sale of the controlling interest in Tnuva to Apax, and are seeking to draft an alternative proposal for acquiring ownership, in order to ensure that there will be no change in their long-term arrangements with Tnuva. The dairy farmers and Shamir discussed the possibility that both parties would enter into an equal partnership in Tnuva, but it became clear to Shamir that should he enter into joint ownership with them, he would not be able to issue Tnuva's share capital. Such an issue would not be possible, due to a slew of legal restrictions, stemming from the fact that the dairy farmers, who hold a portion of Tnuva's shares, also supply milk to the cooperative.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS