Carrefour Israel Prepares for Stock Exchange Listing

Carrefour Israel is moving towards an initial public offering (IPO) on the stock exchange, having submitted a preliminary prospectus draft. Concurrently, Electra Consumer Products, which controls Carrefour Israel, is exploring the sale of a portion of its stake to reduce its ownership.

This potential sale is also being considered in light of the Alko Group's structure and concentration regulations. Alko is a public company, and Electra Consumer Products, controlled by Alko, is also public. Making Carrefour a separate public entity could add another public layer to the group's structure.

Previous discussions had considered Electra Consumer Products reducing its approximately 49.5% holding to around 24.9%, possibly through dilution during the IPO and a secondary offering. The aim was for Electra Consumer Products to no longer hold a controlling stake after Carrefour becomes public. Another option previously examined was distributing Carrefour shares as a dividend in kind to shareholders.

The current report explicitly mentions the possibility of Electra Consumer Products conducting a secondary offering of some of its shares. However, the submission of the draft prospectus does not guarantee the IPO will be completed. The size of the offering, its structure, pricing, and timing have not yet been determined.