Tiv Taam’s attempt to reduce the price it must pay for acquiring Mekor VeMa'arav has failed. An arbitrator, accountant Chen Shreiber, ruled that the total transaction value is 126.5 million shekels, higher than both the figure Tiv Taam had argued for and the amount set in the original agreement. The dispute involved Tiv Taam, controlled by Haggai Shalom, and Mekor VeMa'arav, founded by Oded Kalif.
The ruling means Tiv Taam must add another 3.1 million shekels, after already paying Kalif 73 million shekels. The first stage represented 60% of the total deal, while a decision on the second payment has not yet been made. Tiv Taam’s subsidiary Yisraco carried out the transaction.
The sides signed the purchase agreement in December 2024, valuing Mekor VeMa'arav at 121 million shekels. That valuation was based on a multiple of 6 on the company’s average EBITDA for 2023 to 2025, plus 20% of net profit in 2025. The deal was structured in two phases, with Tiv Taam receiving 60% of Mekor VeMa'arav in April 2025 for 73 million shekels.
Afterward, the parties disagreed sharply over the value. Tiv Taam said the total deal should be 4.7% below the signed valuation, implying a first payment of 69.3 million shekels. Kalif argued the company was worth about 160 million shekels, which would have made the first payment about 96 million shekels. Mekor VeMa'arav ended 2024 with a 22.8% rise in net profit attributable to shareholders, to 17 million shekels. Its results were consolidated with Tiv Taam’s in April last year. Last month, Tiv Taam said the second phase, originally due in April, was postponed until the arbitration decision. In the same month, Haggai Shalom’s daughter, Chen Hagi Cohen, was appointed co-CEO of Mekor VeMa'arav, raising her annual compensation by 25% to 1.44 million shekels from 1.15 million.
