The owners of Caniel Packaging Industries have received offers to sell the company.

Zadik Bino, Avraham Bigger and Moudi Ben Shach have been negotiating a possible sale for weeks, to potential investors from real estate and industry.

Sources close to the negotiations estimate that Caniel's shareholders will insist on a company value of $70 million, which is about the value at which they bought the company in the first place - but since then, they've withdrawn more than NIS 200 million in dividends.

Negotiations have reached an advanced stage, say the sources, though no binding agreements have been signed.

Caniel makes packaging for industrial applications, including cans, bottles and packaging for foodstuffs.

The sources estimate that one of the attractions in Caniel is the land on which one of its plants sits, in Petah Tikva. With the real estate market rebounding, the site is worth about at $25 million.

The land is zoned for commerce and industry, but Caniel's management has been making moves to have the land rezoned for residential use.

The company's strategic plan includes moving the plant from Petah Tikva to the company's site in northern Kfar Sava, and selling the land in Petah Tikva.
 
Caniel's largest shareholder is Zadik Bino, who also owns controlling interests in Paz Oil and the First International Bank (Beinleumi). He for one would be perfectly happy to sell Caniel. An earlier round of discussions was conducted in 2004, when Dov Tadmor suggested buying Caniel at a valuation of about $40 million.

Other parties that have expressed interest in the company include Gazit Globe (TASE: GLOB)  and the Nir-David Group, which purchased Kargal.

Bino and his partners acquired the 80% controlling interest in Caniel in late 1998. He later bought the rest of the company's shares from the public, and delisted the company.

As for Avraham Bigger, he has a reputation as a serial corporate healer and here too, he was hired to restructure the company. He separated the two company sites into separate legal entities, laid off staff and downsized management - ultimately achieving profit, surmise capital market sources.