The conflict between the controlling shareholders of Tnuva is escalating: Bright Food, which owns 77% of the company, warns kibbutz organizations holding the rest of Tnuva’s shares that it will issue a public offering of securities on the Tel Aviv Stock Exchange or an international stock exchange, arguing that this is a “good time to turn For the public and for entering markets in particular, given the good market conditions as a whole. “
Bright Food, the majority shareholder in Tnuva since 2014, accuses the kibbutz organizations of violating agreements with it, stating that it will consider issuing only its share and claiming from the kibbutz organizations the damage caused to the company “as a result of their behavior.”
In a letter sent by Bright Food Vice President Lily Wong to the director of the Kibbutz Holdings Association in Tnuva, Amit Ben Yitzhak, Wong defines the kibbutz organizations ‘opposition to the IPO as “baseless”, stating that the holding association’s conduct violates the shareholders’ agreement. It further states that the kibbutz organizations will bear any damage caused to Bright Food or Tnuva as a result of their conduct when “the disruption to the IPO process continues, Bright Food will have no choice but to consider making a separate offer to the public of its holdings.”
Bright Food is happy to carry out the offering at the current time, following an estimate of NIS 9-10 billion in the offering. The company gave the kibbutz branders a one-week deadline to respond to the letter.
Wong’s serious remarks do not come out of nowhere: After Rosh Hashanah, the Tnuva board of directors will convene at the request of representatives of kibbutz organizations to discuss the removal of company chairman Haim Gavrieli. It should be noted that the chances of leading to the removal of the chairman are low, since the board has a majority of the aforementioned Bright Food representatives, but the goal is to bring the issue up for discussion in the ethics angle and later shake it up in light of the discussion and accusations.
“Trampling on any norm of good administration”
Sources from the minority shareholders (kibbutz organizations) are not expected to allow the IPO as they make serious accusations against Bright Food, including a claim to distort the reality that emerges from Wong’s letter: State and Company Conduct by Law.
The Tnuva board of directors never discussed the issue, did not approve it, did not allow the company to issue a prospectus as required – everything is a sham – from start to finish. Every sensible person understands that an IPO is not possible as long as Gabrieli is in such a dramatic conflict of interest, an event that can not yet be described in its full severity. Bright Food and a kidney-bearer in Israel, Haim Gabrieli, are once again trying to intimidate board members and intimidate its shareholders. It is an illegal and futile effort that will not bear fruit.
The attempt to hold on to the foundations of the altar and prevent the removal, in one way or another, of the devoted chairman – will not succeed this time either. “Tnuva and its leaders are under investigation and with unprecedented administrative failure. In the current circumstances, and in light of the controlling shareholders’ attempt from China to prevent and disrupt a serious investigation being conducted in the company, no one will allow the company to be issued.”
According to Bright Food, the discussion on the issuance of Tnuva first arose at a meeting of Tnuva shareholders, including the kibbutzim in Hong Kong, in January 2020, and since then several more meetings have been held on the subject.
A source close to Bright Food said that “Bright Food is tired of the kibbutzim’s behavior, which harms Tnuva. Bright Food is willing to cooperate for the benefit of Tnuva and all shareholders. If the kibbutzim do not respond within a week, Bright Food will consider issuing only its shares (76%). They will be worth much less than today. “