Arbitrator Rules Asian Food Buyer Tiv Taam Must Pay 8% More for Mizrah U'Ma'arav

An arbitration decision has increased the purchase price that Israeli food company Tiv Taam must pay for Asian food firm Mizrah U'Ma'arav by 8%, raising the total from the originally agreed 121 million shekels to 131 million shekels. The dispute arose after the two parties disagreed on the company's valuation following a December 2024 agreement, which valued Mizrah U'Ma'arav at 121 million shekels based on a multiple of six times the average EBITDA from 2023 to 2025 plus 20% of the 2025 net profit.

Tiv Taam's subsidiary, Yisrako, initially paid 73 million shekels in April 2025 for 60% of Mizrah U'Ma'arav. However, Tiv Taam argued the total consideration should be about 115.4 million shekels, 4.7% less than the original estimate, while Mizrah U'Ma'arav founder Oded Kalif claimed it should be approximately 159.9 million shekels, 32% higher. The arbitrator, certified accountant Chen Schreiber, resolved the dispute by setting the total price at 131 million shekels.

From this amount, the first payment of 75.9 million shekels (excluding interest and linkage differences) will be deducted, leaving a deferred payment of about 55.1 million shekels plus approximately 1.1 million shekels in interest and linkage adjustments. Tiv Taam stated the ruling will not materially affect the company or its business results and that Yisrako is preparing to complete the second payment and finalize the acquisition.

Additionally, two months ago, Chen Haggai Cohen, daughter of Tiv Taam controlling shareholder Haggai Shalom, was appointed co-CEO of Mizrah U'Ma'arav, with a 25% increase in her annual compensation to 1.44 million shekels from 1.15 million shekels in her previous role.