Israeli Retailer Half Price Faces Acquisition Talks Amid Internal Dispute
Translated & summarized from Calcalist by baba
Investment funds Apex and Manor Evergreen held talks to acquire the Israeli retail chain Half Price, as revealed in shareholder letters concerning the dismissal of former Deputy CEO Orit Bar Shalom. Bar Shalom was accused of sharing sensitive company information with potential investors without authorization. She confirmed the contacts but defended her actions, stating they were conducted professionally and under confidentiality agreements. The retail chain, with eight branches, generates about NIS 2.5 billion annually, and a lawsuit by Bar Shalom indicated other interested parties, including Harel Wiesel and Zvika Villiger.
The story in 5 lines · by baba
- Apex and Manor Evergreen funds negotiated to buy Israeli retailer Half Price.
- Half Price CEO accused Orit Bar Shalom of sharing sensitive data with investors.
- Bar Shalom confirmed talks but claimed they were professional and confidential.
- Half Price has 8 branches and annual revenues of approximately NIS 2.5 billion.
- A lawsuit revealed Harel Wiesel and Zvika Villiger also showed interest in the company.
Investment funds Apex, led by Zehavit Cohen, and Manor Evergreen, headed by Avi Ortal, engaged in discussions to acquire the Israeli retail chain Half Price. These negotiations came to light through shareholder letters related to the dismissal of Orit Bar Shalom, daughter of the company's founder Zaki Shalom, which were obtained by the business publication Calcalist.
The letters reveal that the funds, already active in the food, consumer goods, and retail sectors, were granted access to Half Price's financial reports and a business presentation prepared by the investment bank ValueBase. The information was shared as part of due diligence for a potential acquisition.
In a summons for a hearing prior to her dismissal, Half Price CEO Moti Cooperly accused Bar Shalom, who served as Deputy CEO of Trade, of approaching potential investors, including Apex and Reality Fund, without company authorization. Cooperly alleged that Bar Shalom presented sensitive, non-public internal financial and strategic information about the company and its subsidiaries, leading to acquisition or investment offers.
Bar Shalom confirmed engaging with investors like Apex and Manor Evergreen but asserted that these actions did not compromise her work responsibilities. She stated that professional advisors, including ValueBase, were used to explore the transaction possibility, preparing materials and discreetly contacting interested parties. She also claimed that the investors initiated the interest in acquiring the chain and that information was shared under confidentiality agreements.
Half Price operates eight branches and reportedly generates approximately NIS 2.5 billion annually. Apex currently holds Max Stock, while Manor Evergreen controls the paper and cleaning products manufacturer Niv and recently acquired Peanut Marketing. A lawsuit filed by Bar Shalom in June revealed that Harel Wiesel and Zvika Villiger had also shown interest in the company. Bar Shalom and her mother, who together hold 33% of Half Price, are suing Cooperly and his family (66%) for minority shareholder oppression, seeking to dissolve the partnership and separate the company's real estate arm from the retail business, which has guaranteed NIS 1.2 billion in debt.