Israeli retailer Blue Square has signed an agreement to acquire 25% of the outstanding share capital of Bee Group Retail.
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The ILS35.4m (US$10.02m) deal will increase Blue Square’s interest in Bee Group to 85%, the company announced today (4 August).
Under the terms of the agreement, during the five-year period from closing, Blue Square will be entitled to acquire the remaining 15% of Bee Group’s capital stock for approximately ILS21.24m, increased by 7.5% annually until actual payment.
“We are looking for Bee Group Retail to be an engine of growth for Blue Square in the non food sector and to serve as the private label arm of Blue Square in the houseware sector,” said Zeev Vurembrand, CEO of Blue Square. “Through this acquisition, we are implementing our plan to be a major player in the non food sector.”
Bee Group has declared the payment of a cash dividend to Bee Group shareholders in the aggregate amount of ILS13.7m, of which the sellers would be paid ILS10.96m, subject to the closing of the share acquisition by Blue Square described above and to the receipt of the consent from the Bee Group bank lenders.
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By GlobalDataThe agreement is subject to the satisfaction of various closing conditions.
