Dan Acquires Tnuufa Bus Company for $150 Million
Translated & summarized from Channel 13 by baba
Dan Transportation is acquiring Tnuufa, a bus company operating in Samaria and the Jerusalem Corridor, for approximately 150 million shekels. The deal aims to resolve service issues that have plagued Tnuufa, with about 30% of its buses reportedly out of service. The acquisition will expand Dan's fleet to around 3,500 buses, and Dan is committed to purchasing at least 100 new electric buses. The National Public Transport Authority had given Tnuufa an ultimatum to sell or lose its routes, prompting the sale.
The story in 6 lines · by baba
- Dan Transportation will acquire Tnuufa for approximately 150 million shekels.
- The acquisition aims to resolve severe service issues and frequent cancellations affecting Tnuufa passengers.
- Tnuufa has about 30% of its 420 buses out of service due to malfunctions.
- The National Public Transport Authority issued an ultimatum for Tnuufa to sell or lose its routes.
- Dan's fleet will expand to about 3,500 buses, including at least 100 new electric ones.
- The deal expands Dan's operations into the Samaria and Jerusalem Corridor regions.
Dan Transportation has signed an agreement to purchase all shares of the bus company Tnuufa for approximately 150 million shekels. This acquisition is expected to expand Dan's operations into the Samaria and Jerusalem Corridor regions, including Beit Shemesh and its surroundings. The deal will increase Dan Transportation's bus fleet to approximately 3,500 vehicles. As part of the transaction, Dan is obligated to purchase at least 100 new buses, which they intend to be electric.
Tnuufa, established in 2020, operates about 350 intercity buses and has been criticized for poor service. A recent investigation revealed that around 30% of Tnuufa's buses, approximately 140 out of 420, are out of service due to malfunctions, leading to 5% to 10% of scheduled trips being canceled. This situation has caused significant hardship and frequent cancellations for passengers in Samaria, Mevaseret Zion, and the Jerusalem Corridor.
In response to the service crisis, the Chairman of the National Public Transport Authority, Idan Moalem, issued an ultimatum to Tnuufa: either sell the company or lose its routes. This ultimatum significantly accelerated the signing of the acquisition agreement. Tnuufa is partly owned by veteran Likud figures Itzik Koifman and Aryeh Shasha.
Dan Transportation CEO Ofir Karani stated that the acquisition is another step in expanding Dan's core operations and deepening its presence in new areas, promising to bring operational experience to improve service reliability and quality for passengers. Idan Moalem emphasized that passenger service is paramount and that Dan, like any other operator, will be required to purchase new buses and maintain a high standard of service.
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