Shikun VeBinui submitted an offer to purchase 50% of Egged's shares

Last night, Shikun VeBinui submitted an offer to purchase 50% of Egged's shares. Shikun VeBinui's offer was submitted in equal partnership with the American fund Brookfield, which specializes in real estate, infrastructure and alternative energy investments - and this is the first time it is trying to acquire a company in Israel.
Brookfield is an American fund that manages $ 625 billion in assets in 30 countries and employs 150,000 people in the companies in which it invests. Brookfield invests in real estate, and owns 318 square meters of properties in the United States, Canada, Britain, Germany, Australia, Brazil, India and South Korea. Brookfield is one of the largest investors in the world in the field of infrastructure. The company is also active in the energy market. Renewable, and holds 6,000 power plants in various technologies with a total capacity of 20 gigawatts in North and South America, Europe, India and China.
Other entities that submitted an offer to purchase 50% of Egged's shares are Colmobil, controlled by the Harlap family, which is an importer of Mercedes, Mitsubishi and Hyundai in Israel; and the private investment fund Fortissimo, which is managed by Yuval Cohen; Mazda, Ford, BMW and Mini Minor, controlled by Gil Agmon, and subsidiary Veridis; And a group that includes the car import and real estate company Kerso, the insurance company Migdal and the Aluma Infrastructure Fund.
According to the structure of the transaction, the selected investor will purchase 50% of Egged's shares from its current shareholders. At the end of two years from the completion of the transaction, and up to five years from the completion of the transaction, Egged's current shareholders will have an option to sell their shares to the investor at the initial transaction price. The sale of 50% of its shares was the condition set by the state for turning Egged from a cooperative into a company; A move approved by the cooperative members by a 91% majority in May 2019.
The inclusion of a partner at a rate of at least 50% will allow the union to maintain the fruits of efficiency and enter into complementary areas of activity. Egged, which hired HSBC Services as an investment bank, aims to execute the deal at a company value of NIS 4 billion.