A consortium of Alon-Dor Fuel Company and Mathew Bronfman successfully beat off competing bids from three other consortia for Israel’s Blue Square Co-Op supermarket chain.
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The group will pay NIS1.3bn (US$279m) for 78% of Blue Square Israel shares, reflecting a 25% premium on the company’s current market value. The sale, according to a report in Haaretz, “will grant the Alon-Dor group full control over Blue-Square Consumer Cooperative Society following its decision to sell off its major assets.”
The cooperative society has nearly 22,000 members who will each receive NIS52,700 from the sale. Four groups submitted on Sunday bids for the control of Blue Square Israel: Alon-Dor, Paz Fuel and Bank Leumi, Kardan, and a group headed by Rami Shavit.
Mathew Bronfman holds a 50% interest in the venture to buy Blue Square Israel together with the Alon-Dor group. Bronfman, 43, is a member of the Canadian Bronfmans, and is the son of Edgar Bronfman of Seagram.
