Ganden to issue $80 million rights to shareholders to finance IDB deal
Ganden Holdings, which is negotiating to acquire 52% in IDB Holdings at $1.05 billion value, is poised to raise $80 million via a rights offering to shareholders, TheMarker has learned.
Shareholders due to participate in the financing round include Ganden co-founder Nochi Dankner, who owns 31% in Ganden Holdings, Yitzhak Dankner, who owns 15%, Nochi Dankner's sister Shelly, who owns 3%, Slovenian investor Darko Horvat and the Schimmel family.
The round will be based on $180 million company value, $60 million above the value at which Ganden Holdings' previous rounds have been based. Since its establishment, Ganden Holdings has raised $120 million equity from shareholders.
Ganden Holdings' shareholders equity today comes to somewhat less than $100 million, which doesn't allow it to raise the $545 million required in order to complete the IDB deal.
Capital market sources estimate that Ganden Holdings will have to present $180 million shareholders equity, and that it will raise the remainder through loans from local banks.
Ganden and the Recanati family are due today to sign a no-shop agreement that prohibits sellers negotiating with other entities for a period of two weeks, at the end of which the parties are due to sign a full agreement. The deal itself is to be effected in several months, after receipt of the required approvals and the signing of financing agreements.
Upon closure of the deal, Nochi Dankner will have to resign his various positions at Bank Hapoalim, and will later sell most of his holdings in the bank.
Other shareholders in Ganden Holdings are Ganden group co-founder, advocate Avi Fischer, who owns 7%, Vyyo (Nasdaq:VYYO) CEO Davidi Gilo who owns 7%, the American Gilinski family which owns 7%, and Emblaze (LSE:BLZ) founder Tzur Daboosh, who owns 5%.
