97% of Israir’s T bondholders supported its sale to Legal Damari

A clear majority of IDB Series I bondholders support the sale of Israir to businessman Yigal Damari. In a vote held today (Thursday), about 97% of the participants supported Damari’s proposal to acquire Israir at a value of NIS 169 million.

However, Damari submitted his bid a day after the deadline for submitting bids set by IDB trustee Adv. Ofir Naor, so that Damari’s choice by the holders of T bonds is likely to meet with opposition from the other participants in the tender, Dor Alon’s company controlled by Moti Ben Moshe and the BGI company controlled by Ramo Levy and Shalom Haim. It should be noted that even the IDB trustee himself has not yet formulated his position on the issue.

According to his latest offer, Damari will purchase 83% of Israir’s shares in exchange for a payment of NIS 140.4 million in cash. The remaining shares (17%) of Israir will be held in trust for holders of IDB’s T bonds, until Israir’s listing on the Tel Aviv Stock Exchange or until their purchase.

According to Damari, he intends to act to list Israir’s shares for trading on the stock exchange within 18 months from the date of completion of the transaction. Damari also stated in his proposal that “at the same time as the listing for trading on the stock exchange, an additional amount will be raised by Israir for the development of the company and for Israir to meet the stock exchange’s guidelines regarding value and public holdings required to list Israir shares.”

However, in the event that the company’s listing for trading is not carried out during this period, Damari undertook to purchase from the trustee the remaining shares in exchange for an amount of NIS 29.5 million.

To this offer must of course be added Damari’s commitment that Israir will waive the $ 5 million loan it previously granted to IDB, as did the other two bidders on the acquisition of Israir.

The improvement proposed by Damari put it in line with Dor Alon’s offer to purchase 100% of Israir’s shares in exchange for NIS 168.4 million in cash. BGI, for its part, offered to acquire 66% of Israir, with the remaining shares (34%) being purchased by its controlling shareholders (Rami Levy and Shalom Haim or companies owned by them).

Its offer includes a payment of NIS 101.2 million in cash, of which NIS 50 million will be paid by BGI and another NIS 51.2 million will be paid by its controlling shareholders. In addition, the offer includes an allotment of 29.4 million shares of BGI (32.5% of the company) at a current value of NIS 29.4 to IDB for its creditors.