FITE turnaround fund may invest in Solbar
The soy products maker lost NIS 44 million in 2005
FITE, an Israeli turn-around investment fund, is back at the table negotiating a potential investment in soy-products maker Solbar Industries (TASE: SLBR).
Shamrock and Tene had also been in the running to invest in the kibbutz company, but pulled out. In fact, Shamrock and Tene had signed memorandums of understanding, but Shamrock withdrew first after deciding the investment wasn't worth it. Tene hung on until last month, looking for another partner after Shamrock decamped.
Once they were gone, FITE stepped in.
FITE specializes in turning around companies in trouble. That would suit Solbar, which posted a huge loss of NIS 44 million for the year 2005.
Solbar made headlines after demand at its initial public offering passed a trillion shekels. But it is also true that the demand was less for bean products and more a result of a warped system, in which investors expected to receive a tiny fraction of the amount of securities they ordered.