Carrefour Israel Nears Stock Market Debut with Prospectus Filing

Electra Consumer Products has taken a significant step towards listing the operations of the French supermarket chain Carrefour on the Tel Aviv Stock Exchange. The company announced that France Israel Group, which holds the Carrefour operations in Israel, has submitted a draft prospectus to the Israel Securities Authority for a potential IPO. If the offering proceeds, it is expected to occur after the Jewish holidays, likely in November.

France Israel Group, in which Electra Consumer Products holds a 49.49% stake, fully owns Global Retail, the operator of the Carrefour chain in Israel. Electra Consumer Products Chairman Zvika Shwimmer previously stated the group's intention to spin off Carrefour's operations into a separate public company. As part of this process, Electra Consumer Products is also considering selling a portion of its stake in France Israel Group to comply with Israel's concentration law and avoid Carrefour's operations being classified as a "third layer" within the group's public company structure.

The submission of the draft prospectus is an initial step, and the completion and terms of the IPO are not yet certain. However, it signifies progress in Electra Consumer Products' plan to establish Carrefour as an independent public entity. Shwimmer described the filing as a "very important step, combining good business results, the alignment of all shareholders, and a brand that has become a leader in Israel."

Separately, Carrefour recently announced its decision not to extend its participation in the Ministry of Economy's "Cheap Basket of Israel" initiative beyond its initial six-month period, citing negative impacts on its financial results. The price-fixing initiative is expected to conclude after the holidays, six months after its April commencement.