Escalation in the conflict: Brightfood, which controls Tnuva, issues an ultimatum to the kibbutzim – and demands that they allow the issuance of Tnuva, each according to its relative share in its holdings in the company. Brightfood claims that the kibbutzim are violating the partnership agreement and are threatening to issue only their share in the company. The kibbutzim are required to respond within seven days.
The kibbutzim demand to sell their entire share in the IPO. The company, whose value has dropped to NIS 5 billion in the past, aims to issue at a value of NIS 9-10 billion, based on growth in recent years under the management of CEO Eyal Malis and chairman Haim Gavrieli, who have recently been charged with power and organizational relations. The kibbutzim are demanding his removal from the post of chairman.
A letter sent last weekend by Brightfood to Amit Ben Yitzhak, the representative of the kibbutzim at Tnuva, states that Breitfood has been considering issuing Tnuva shares on the stock exchange for some time, after excellent financial results in recent years, and that it is expected to continue to prosper. Hence, this is a good time to make it public. However, the holdings association (kibbutzim) raised unfounded objections to the IPO and filed unreasonable demands, including the demand that it be able to sell most or all of its holdings, instead of its relative share.
According to Brightfood, this conduct constitutes a clear violation of the shareholders’ agreement, and the holdings of the holding association regarding the issue are raised in bad faith and for the sole purpose of preventing the issue. Therefore, Brightfood threatens that the representatives of the kibbutzim will be held responsible for any damage or loss caused to Brightfood and Tnuva as a result.
Lior Horev, an adviser to minority shareholders, said: “Brightfood’s announcement is another shot in the dark, trampling on any norm of good administration, state laws and company conduct according to law. Tnuva’s board of directors never discussed the issue, did not approve it, did not allow the company to leave For a prospectus as required – everything is a sham – from start to finish.
“It is not possible to issue as long as Gabrieli is in such a dramatic conflict of interest, an event that can not yet be described in full severity. “An unprecedented managerial omission. In the current circumstances, no one will allow the company to be issued.”