Update: Willi-Food has announced an MOU for the deal.
Update: Willi-Food has announced a non-binding memorandum of understanding to buy 51% of the Russian eggs and slaughterhouse company owned by Arcadi Gaydamak for an estimated $32.6 million. The value of the Russian company for the purposes of the deal will be 4.08 times its net profit in 2008, estimated at $8 million. Gaydamak has stated that the company's revenue next year will be $120-150 million. The purchase price will be paid 40% in cash and the remainder in Willi-Food shares according to the price at which Gaydamak bought control of the comany, adjusted for inflation. G. Willi-Food Investments Ltd. (TASE:WLFD has confirmed negotiations with its controlling shareholder Arcadi Gaydamak about the possibility of the company entering into a partnership with a Gaydamak-owned company that owns poultry houses and slaughterhouses in Russia. Gaydamak intends to expand the business of which he acquired a few months ago. Gaydamak is believed to mulling the merger of his egg and poultry business in Russia with Willi-Food, which will then manage his food business there. Gaydamak is reportedly the largest supplier of eggs in Moscow and the surrounding region and the merger will give Willi-Food a foothold in the Russian market.
Willi-Food also intends to begin marketing kosher food products to Moscow's Jewish community. Gaydamak recently toured his poultry sites together with Willi-Food founder Zvi Williger, who still owns 12% of the company, and representatives of the large accountancy firms who have been engaged to appraise the farm.
"Globes" reported yesterday that Gaydamak is also expanding the international activity of his real estate company Ocif Investments and Development Ltd. (TASE: OCIF), also acquired earlier this year. Gaydamak will sell two lots he owns in Moscow to Ocif for $100 million.
Published by Globes [online], Israel business news - www.globes.co.il - on October 2, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007