Victory Seeks Antitrust Approval for Carrefour Stake Purchase
Translated & summarized from Calcalist by baba
Victory supermarket chain has applied to the Israel Competition Authority for approval to purchase shares in Carrefour Israel during its upcoming IPO. Carrefour, owned by Electra Consumer Products, is set to list on the stock exchange with a valuation of about 900 million shekels. The IPO aims to raise funds and reduce ECP's controlling stake in Carrefour. Other retailers are also reportedly exploring potential acquisitions of Carrefour shares.
The story in 5 lines · by baba
- Victory supermarket chain seeks antitrust approval to buy shares in Carrefour Israel's IPO.
- Carrefour Israel plans to list on the stock exchange at a valuation of approximately 900 million shekels.
- Electra Consumer Products will reduce its controlling stake in Carrefour to below 25% post-IPO.
- Victory's previous merger talks with Carrefour failed in January over leadership and share ratio disputes.
- The IPO aims to raise 350-400 million shekels for Carrefour and reduce its financing costs.
Israeli supermarket chain Victory is once again eyeing a significant stake in rival Carrefour Israel, following a failed merger attempt earlier this year. Victory, owned by Eyal Ravid, has approached the Israel Competition Authority for pre-ruling on acquiring shares during Carrefour's upcoming IPO. The offering will include over 30% of Carrefour's shares, requiring approval from the authority for any competing retailer seeking to purchase a substantial amount.
Carrefour Israel, owned by Electra Consumer Products (ECP) under the Zalkind brothers, is preparing for its stock market debut with a valuation of approximately 900 million shekels. The company aims to raise 350-400 million shekels, with a significant portion being a sale of ECP's shares, which would reduce ECP's ownership from 49.5% to 24.9%, thus relinquishing control.
This potential shift has prompted other retailers to explore their options. While "Makhsaney Hashuk" denied intentions to pursue Carrefour shares, industry sources suggest King Store may also be considering it. Victory's previous merger talks with Carrefour collapsed in January due to disagreements over leadership and share ratios, with Victory seeking to lead the combined entity.
Despite market conditions and recent stock market downturns affecting retail chains, Carrefour's IPO is proceeding. The offering aims to reduce Carrefour's annual financing expenses, which amount to 50 million shekels. While acquiring all shares in the IPO is unlikely due to expected distribution among institutional investors, Victory may aim for a smaller stake (5-10%) as a stepping stone for future control acquisition.
Carrefour operates 140 branches and reported 1.68 billion shekels in revenue and 86 million shekels in operating profit in the first half of the year. Victory, with 70 branches, had sales of 1.3 billion shekels in the same period, with a small portion attributed to sales in the Gaza Strip. Other Carrefour shareholders include Nachum Biton, Simon Pinto, and The Phoenix, all of whom are expected to be diluted by the IPO, though Biton is reportedly looking to increase his holdings.