Gloves off as DPL improves its bid in Tafnukim auction
In a last-minute twist, DPL upped its bid for Amir Paper Products, manufacturer of the Tafnukim diaper brand, and its new offer for the company looks likely to be accepted after the weekend.
DPL's improved bid stands at NIS 7.4 million in cash, with a commitment to reopen the plant immediately, and a further obligation to pay an operating rent on the plant of NIS 110,000 a month for the next 10 years. The company also committed to continue employing most of Amir's current payroll.
DPL's bid is now the highest submitted to Amir's trustee, and sources close to the trustee, Oren Gottesman, believe that the offer will receive the backing of Amir's bank creditors.
Amir Paper Products and Kibbutz Amir were granted court protection from their creditors last month after running up debts of NIS 270 million - NIS 110 million by the plant, and NIS 160 million by the kibbutz itself.
Bank Hapoalim, Amir's major creditor, supports DPL's offer, and also extends DPL part of the credit for the proposed acquisition. The Histadrut labor federation also expressed its support for DPL's bid.
DPL was one of four companies that submitted bids for Amir Paper Products, which manufacturers diapers for adults as well as the Tafnukim brand. The other contenders were cleaning products firm Sano, manufacturer of surgical dressings Nissan Medical Industries and Clear Chemicals.
DPL manufactures private label wet wipes for export to Europe and the U.S. at its plant in Caesarea and is controlled by the Adiv family. Yaron Adiv, CEO of DPL, said that if its bid was successful, DPL would expand its production line of wet wipes at the Amir plant, which will need to take on extra staff. The company would continue with the adult diaper line, which constituted 30 percent of Amir's production, Adiv said.
DPL's improved offer pushed Nissan Medical Industries into second place in the bidding. When asked if he would be changing his company's offer, Hezzy Nissan of Nissan Medical Industries said he had no comment.
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