The Ben-Zakan-Ravivo-Nanakshvilli (Pilger) consortium will place a NIS 626 million offer for Nitsba Settlements today.
Nitsba Settlements is the parent company of the publicly traded real estate company Nitsba Holdings, and the bid is a continuation of the rights obtained by the Ben-Zakan group to improve its offer for the company. Nitsba Settlements holds 63.5 percent of the Nitsba Holdings subsidiary.
During the bidding for Nitsba, which has transpired for several months, the company's value has risen by several hundred million shekels. Ben-Zakan-Ravivo-Nanakshvilli's latest offer includes several benefits to the shareholders - comprising many retired workers of the Egged bus cooperative - in addition to the cash sum of NIS 626 million in an attempt to hold off competing offers. As part of the offer, Nitsba's shareholders will be granted the decision to convert shares in Nitsba Settlements into tradable shares of Nitsba Holdings as listed on the stock exchange. This clause gives the shareholders direct participation in the company's future as well as annual dividends, should the company choose to distribute any. The bidding consortium noted that if it were successful, it would pay dividends of at least 50 percent of Nitsba Holdings' profits.
Final approval of the consortium's offer is intended to avert any legal action against the company regarding flaws in the original sale process, when Nitsba Settlements allowed bids after the tender was closed.
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