Dan Transportation Completes Major Shareholder Exit, Investors Gain Control
Translated & summarized from Ice by baba
Dan Transportation has finalized its acquisition, distributing 132 million shekels to 177 members selling shares, with private investors now holding 57% control. Many veteran employees chose to retain their stakes, signaling confidence in the company's future, possibly ahead of a stock market listing. The overall deal was valued at 2.1 billion shekels, with Dan undergoing a significant expansion and transition to a corporate structure.
The story in 5 lines · by baba
- Dan Transportation distributed 132 million shekels to 177 members selling shares in the final acquisition phase.
- Private investors, led by CEO Ofir Karni, now hold 57% of Dan Transportation after the acquisition.
- A majority of veteran shareholders chose to retain their stakes, signaling confidence in the company's management.
- The total transaction was valued at approximately 2.1 billion shekels, with an effective company valuation of 2.8 billion shekels.
- Dan Transportation is transitioning from a cooperative to a corporate structure amid significant expansion.
Dan Transportation, a major Israeli infrastructure and transportation company, has officially concluded its acquisition process. In the final phase, the company distributed approximately 132 million shekels to 177 long-standing members who chose to sell some or all of their shares. This marks the complete transfer of control to a private investment group, led by Dan CEO Ofir Karni and prominent institutional bodies.
Despite the sale, a significant number of veteran drivers and employees opted to retain most of their holdings. The investment group will now acquire an additional 5% of the company's equity, bringing their total stake to about 57%. This concludes the two-stage acquisition, which began in late June with the purchase of stakes from Value Keren and LBH, reaching an initial 52% ownership.
The overall transaction, spanning both stages, was initially valued at approximately 2.1 billion shekels, reflecting an effective company valuation of about 2.8 billion shekels. However, the final outcome differs considerably from the buyers' initial plans. The intention was to purchase about 23% of the company's shares from its members, but most of the 1,078 veteran shareholders chose not to sell.
Many members were offered an immediate exit of around 600,000 shekels gross for half their shares, or up to 1.2 million shekels for a full sale. The decision by hundreds of members to retain approximately 43% of the company is seen in the capital market as a strong vote of confidence in the management's ability to enhance Dan's value, potentially in preparation for a stock exchange listing. This is coupled with a deep emotional connection to the company where they worked for decades.
This confidence is bolstered by Dan's recent expansion, including the acquisition of the bus company "Mesiei Sasha," an agreement to purchase public transport operator "Tnuufa," and increased involvement in national infrastructure projects like operating rapid lanes into Gush Dan and bidding for light rail projects in Tel Aviv and Jerusalem. With Karni and institutional investors securing control, and members remaining significant partners, Dan is transitioning from a historical cooperative to a diversified business corporation focused on the capital market.
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