The discount supermarket chains Yohananoff and Victory are expected to buy 16-17 You supermarkets from the struggling Mega chain for between 50 million and 60 million shekels ($13 million- $15.5 million), TheMarker has learned.
Mega and Yohananoff confirmed talks were under way, but declined to provide details. Sources however, said the three sides were in advanced negotiations for two deals under which Yohananoff would buy 10 of the biggest You stores and Victory the rest.
“There’s a fire burning under Mega’s headquarters – they want to finish the matter tonight,” said a source who asked not to be named. You, the discount brand of the Mega chain, has only 22 stores, so that if the sale is completed, the rest are likely to be shuttered since such a small number couldn’t be viable.
Shares of Alon Blue Square, which controls Mega, soared to end 21.2% higher at 1.30 shekels on Thursday in Tel Aviv Stock Exchange trading.
Want to enjoy 'Zen' reading - with no ads and just the article? Subscribe todaySubscribe now