Victory Supermarket Owner Eyal Ravid Seeks Stake in Carrefour Israel
Translated & summarized from Globes by baba
Eyal Ravid, owner of the Victory supermarket chain, is attempting to purchase 30% of Carrefour Israel's operating company as part of an upcoming share offering. The deal, which involves current shareholders like Electra Consumer Products, could allow Ravid to become a dominant shareholder. However, the negotiation process and the preference of existing shareholders for institutional investors present significant hurdles. The offering's structure is still being finalized, with no definitive agreements yet in place.
The story in 6 lines · by baba
- Eyal Ravid, owner of Victory supermarkets, is seeking to buy 30% of Carrefour Israel's operating company.
- The move is part of a share offering by Carrefour Israel's current shareholders, led by Electra Consumer Products.
- Ravid's bid is reportedly backed by institutional investors and NIS 100 million in cash.
- The offering structure allows for the possibility of an investor gaining dominant control.
- Major shareholders include Nachum Biton, Simon Pinto, and The Phoenix insurance company.
- Market sentiment suggests controlling shareholders may prefer institutional investors over a single dominant buyer.
Eyal Ravid, owner of the Victory supermarket chain, is reportedly seeking to acquire 30% of the company operating Carrefour in Israel. This move comes as part of a share offering by the company's current shareholders, led by Electra Consumer Products, which holds 50% and is controlled by the Zalkind brothers' Elco group. Ravid's bid, backed by institutional investors and an estimated NIS 100 million in cash, aims to secure a significant position in Carrefour Israel.
The unique share offering structure has attracted considerable interest from various players, including Ravid, who are looking to gain control. Unlike typical offerings where the controlling shareholders retain their stake, this offering allows investors the possibility of becoming dominant shareholders or even taking control. However, the process involves negotiations with underwriters and current shareholders, primarily Electra Consumer Products, which is expected to sell at least 25% of its stake in "France Israel Group," the entity holding Carrefour Global Retail.
Other major shareholders include Nachum Biton (22%), French businessman Simon Pinto (15%), and The Phoenix insurance company (13%). Market sources suggest that the controlling shareholders may be hesitant to grant a dominant position to a single investor like Ravid, potentially favoring investments from institutional bodies instead. The offering method has also shifted from the older, more straightforward auction-style bids to a "book building" process, where prices and allocations are negotiated with a select group of investors.
Despite the interest, the offering is still in its early stages, with no firm offers yet submitted and the structure of the deal far from finalized. The market is watching closely to see if Ravid or other potential investors can successfully navigate the negotiations and secure a substantial stake in Carrefour Israel.
Mentioned
