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G. Willi Food-International Ltd. Message Board

  • stocktries stocktries Oct 3, 2007 8:05 AM Flag

    UPDATE - MOU announced

    Update: Willi-Food has announced a non-binding memorandum of understanding to buy 51% of the Russian eggs and slaughterhouse company owned by Arcadi Gaydamak for an estimated $32.6 million. The value of the Russian company for the purposes of the deal will be 4.08 times its net profit in 2008, estimated at $8 million. Gaydamak has stated that the company's revenue next year will be $120-150 million. The purchase price will be paid 40% in cash and the remainder in Willi-Food shares according to the price at which Gaydamak bought control of the comany, adjusted for inflation. G. Willi-Food Investments Ltd. (TASE:WLFD has confirmed negotiations with its controlling shareholder Arcadi Gaydamak about the possibility of the company entering into a partnership with a Gaydamak-owned company that owns poultry houses and slaughterhouses in Russia. Gaydamak intends to expand the business of which he acquired a few months ago. Gaydamak is believed to mulling the merger of his egg and poultry business in Russia with Willi-Food, which will then manage his food business there. Gaydamak is reportedly the largest supplier of eggs in Moscow and the surrounding region and the merger will give Willi-Food a foothold in the Russian market.
    Willi-Food also intends to begin marketing kosher food products to Moscow's Jewish community. Gaydamak recently toured his poultry sites together with Willi-Food founder Zvi Williger, who still owns 12% of the company, and representatives of the large accountancy firms who have been engaged to appraise the farm.

    Gaydamak mulls merging Russian poultry business with Willi-Food
    Update: Willi-Food has announced an MOU for the deal.
    Globes correspondent 2 Oct 07 16:13

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    • Just like to point out- the deal calls for 40%in cash remainder in"WILLI FOOD SHARES"(that's us).By the way it's agreat deal at 4.08.

      • 1 Reply to farvosnit
      • I am concerned with the lack of positive response from NY. There may be something not so great for WILC stock holders about this deal after all.

        The purchase price will be paid 40 percent in cash and the remainder in Willi shares at the price Gaydamak paid to get control of Willi in June ($10/share).

        What does that mean for us? It's not clear to me.

        With a small volume moving and the price neutral today, while the news is out... it does not look too promising. Again.

        But I am holding at least until the situation appears to be clearer. I'd be very happy to get $11 for my shares.

    • 4.1X '08 Net Profit? Great deal for WLFD...but what about us???

      • 1 Reply to fairlybalanced
      • dennisnolan Oct 3, 2007 10:57 AM Flag

        4x is standard buy price. There seems to be a big picture plan to consolidate the grocery and import markets owned by the russian and trade all of it under one banner.We as stock holders of one of the pieces will benefit from the growth of the whole group of companies. greater share price is the ultimate goal of the consolidation so I am not going to get concerned about how we get meshed in.I am sure the russian has invested in this stock so that he can get a cash appreciation for his investment. that being said it looks to me like he will have to offer a buy out or premium per share for the outstanding shares of wilc in order to complete his plan. the price will usually be a premium of 40% of the trade price at market time of deal.that would make this a conservative buyout of 11.00 per share at present trading value. I would be happy with that offer it it cam to be.

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