TEL AVIV May 25 Israeli investment group
Mivtach Shamir Holdings is in talks with China's
Bright Food Group Co on cooperating in the future as
co-owners of Tnuva, Israel's biggest food company.
Last week state-owned Bright Food struck a deal to buy 56
percent of Tnuva from British private equity house Apax Partners
in a deal that values the Israeli dairy company at
Mivtach, which owns 21 percent of Tnuva, said on Sunday it
has two months to inform Bright Food whether it is staying in
Tnuva or selling.
Mivtach has a "tag-along" option to sell its Tnuva holding
to Bright Food in accordance with the terms of the Apax sale. In
the two months given to it to exercise this option, Mivtach and
Bright Food will seek to settle matters connected to cooperation
between them as owners of Tnuva.
If the negotiations result in agreement, Mivtach will not
sell its holding, and will remain in Tnuva.
A group of kibbutzim, or cooperative farms, own the rest of
"The intention of the parties ... is to work together, and
together with the kibbutzim that also hold rights in Tnuva, and
to collaborate in the Israeli, Chinese and other international
markets in the dairy products and other agricultural sectors,"
Mivtach said in a statement.
(Reporting by Tova Cohen, Editing by Ari Rabinovitch)