Dan Transportation Completes Ownership Transfer, Founders Retain Significant Stake

Dan Transportation, a major Israeli infrastructure and transportation company, has officially concluded its acquisition process. In the final stage, 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 Karani and prominent institutional bodies.

Despite the sale, a significant surprise emerged: many veteran drivers and employees opted not to sell the majority of their holdings. The investment group, which now holds about 57% of the company, acquired an additional 5% of the equity. This follows the initial phase in late June, where the group purchased stakes from Value Keren and LBH, reaching a 52% holding.

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 from the buyers' initial plans. They had intended to purchase about 23% of the company's shares from its members, but most of the 1,078 veteran shareholders chose to retain their stakes.

Each member was offered an immediate payout of around 600,000 shekels gross for half their holdings, or up to 1.2 million shekels for selling all their shares in the non-traded company. The decision by hundreds of members to keep 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 "Mesiei Sasha" bus company, an agreement to purchase public transport operator "Tnuufa," and increased involvement in national infrastructure projects like operating express lanes into Gush Dan and bidding for light rail projects in Tel Aviv and Jerusalem. With Karani and institutional investors securing control, and the veteran members remaining key partners, Dan is transitioning from a historic cooperative to a diversified business corporation focused on the capital markets.