Electra Consumer and Phoenix Investment House acquired Bitan Wines food retail chain

Electra Consumer, which is controlled by Elco and the Phoenix Investment House, reported an agreement to acquire control of the Bitan Wines food retail chain, in exchange for about NIS 275 million in shares and cash.
According to the agreement, Electra should purchase 35.05% of Bitan Wines' shares for NIS 193 million, of which NIS 143 million for allotment of shares, and NIS 50 million by purchasing Menchum and Nurit Bitan shares and Phoenix will purchase about 15% of the company in exchange for approx. NIS 80 million. The two will own more than 50% of the Bitan Wines chain, so the companies actually value Bitan Wines at NIS 550 million and Nahum Bitan will no longer be in control, with Electra having a majority on the board and managing the chain.
The agreement also stipulates that on the date of completion of the transaction, Electra will provide Bitan with a loan of NIS 50 million, bearing an annual interest rate of 6%, for a period of 6 years from the date of signing the transaction, and Electra was given an option to purchase Bitan family shares.
The turnover of the Bitan Wines chain in 2019 amounted to NIS 4 billion. The chain currently operates about 150 branches under the brands "Pavilion Wines", "Mega" and "Mehadrin Market".
 Yigal Damari and Keren Shaked of Gil Deutsch and Roni Biram were supposed to provide Bitan Wines with a loan of NIS 250 million in exchange for 30% of the company, along with another loan of NIS 100 million, but a dispute arose between the parties and contacts exploded.
Zvika Schwimmer, CEO of Electra Consumer: "Pavilion Wines will be a significant growth engine for Electra Consumer Products and also part of our food retail arm and convenience stores, while we also intend to develop the new arm that will focus on the worlds of leisure and sports. Colombia, outdoor and trails in Israel. "