Dan Public Transport Company Completes Second Stage of Control Acquisition
Translated & summarized from Globes by baba
A consortium including Clal, Leumi Partners, and Mizrahi Tefahot has completed the second stage of its acquisition of Dan, a veteran Israeli public transport company, by purchasing 5% of its shares for NIS 132 million. This brings the consortium's total ownership to 57%, with a stock exchange listing planned. The deal concludes an 18-month process that began when Dan was a cooperative controlled by its drivers.
The story in 5 lines · by baba
- A consortium acquired 5% of Dan shares for NIS 132 million, completing the second stage of its takeover.
- The consortium, led by Clal, Leumi Partners, and Mizrahi Tefahot, now holds 57% of the public transport company.
- The acquisition process for the former driver-controlled cooperative began 18 months ago.
- Dan members sold shares at a valuation of NIS 2.8 billion, with most retaining their stakes.
- Dan operates public transport in multiple regions and recently acquired the Tnuufa company.
Members of the Dan cooperative have sold 5% of the company's shares for NIS 132 million, completing the second stage of the acquisition of the veteran public transport company. The acquisition is led by a consortium including Clal, Leumi Partners, and Mizrahi Tefahot, with Dan CEO Ofir Karani at the helm. This move brings the consortium's stake to 57% of the company, with a stock exchange listing also under consideration.
The transaction concludes a process that began 18 months ago. Historically, Dan operated as a cooperative controlled by its drivers, most of whom are now pensioners. Prior to the acquisition, Dan was divided almost equally between Eliahu Base and LBH, with the remaining 48% held by 1,100 Dan members. The new controlling group, comprising Clal, Leumi Partners, and Mizrahi Bank, purchased this core ownership.
Following approval from the Competition Authority, the new group was permitted to acquire up to 75% of Dan. The new majority shareholders offered the 1,100 Dan members NIS 600,000 for half a share and NIS 1.2 million for a full share, valuing the entire company at NIS 2.8 billion. The members opted to sell 5% of the company's total shares, representing slightly over 10% of their collective holdings. The majority chose to retain their shares, anticipating future dividends or potential sales upon the company's planned stock exchange listing.
Dan operates public transport tenders in the Gush Dan area, the Gaza envelope, Lachish, and Be'er Sheva through "Dan B'Darom." It recently added the Jerusalem Corridor and Samaria region through its acquisition of "Tnuufa," a move that has faced significant criticism. Dan also operates the shuttle service on the Ayalon Highway's fast lane, Shapim, and Rishon LeZion, which opened this year.
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