David Ezra sells 50% of Neto food company at a value of NIS 1.2 billion

Three years after failing to sell control of Neto (57%) at a value of NIS 1.1 billion, David Ezra (71), the controlling owner of the sixth largest food company in Israel, is facing the sale of half of its holding in it at a value of NIS 1.2 billion. The value is 143% higher than the share price on the stock exchange.
The large premium stands out against the background of the fact that Neto completed in February 2021 the sale of its holding (50%) in Bikuri HaSadeh Darom, the largest fruit and vegetable wholesaler in the country, for NIS 215 million; Sold in December 2020 the ownership of Dalidag and the three bakers for NIS 37.5 million; And distributed dividends in the amount of NIS 740 million in 2020-2019. These moves were supposed to reduce the value of the company.
It seems that Ezra continues to reduce his holdings in the company, and that he is about to relinquish his sole control over it in the near future. The Ezra Family Trust, which owns 46.8% of Manto, sold 3.3% of its shares in the offshore exchange to Nur Yaska, which is wholly owned by David Matsa, for NIS 40 million.
The deal reflects a price of NIS 323.5 per share, ie a company value of NIS 1.2 billion and a premium of 143% above the market price. Iska, one of the largest suppliers of the Neto Group, was given an option that can be exercised by the end of September 2021 to purchase up to 721,000 shares - which are 19.4% of Neto's shares and half of the balance of the Ezra family's trust holdings.
This means that if Nur Maska exercises the full option, it will hold 22.7% of the company's shares. The option can be exercised in full or in part, provided that the exercise does not amount to less than NIS 40 million. Net earned NIS 56 million on a turnover of NIS 845 million in the first quarter of 2021, compared to a profit of NIS 222 million on a turnover of NIS 3.2 billion in 2020.