TASE’s only SPAC to merge with food co Baladi

ISPAC 1 Ltd. (TASE: ISPC), the only special purpose acquisition company (SPAC) to have held an offering on the Tel Aviv Stock Exchange (TASE) has found a target company to merge into – food manufacturer Baladi, currently owned by hotelier Erez Dahabani. ISPAC 1, which raised NIS 400 million in August 2021, today announced that it had signed a non-binding memorandum of understanding (MoU) to acquire Baladi.

According to the deal, subject to the signing of a binding agreement between the parties, ISPAC 1 will buy Dahabani’s entire holdings in Baladi, and allocate him 64.25% of the shares of the merged company, (53.2% in full dilution) on the basis of a valuation of NIS 1.1 billion for the merged company. In other words Dahabani’s holdings will be worth NIS 700 million.

The deal is contingent, among other things, on a minimum amount of NIS 360 million in cash in the company’s coffers, when the deal is completed.

Baladi is headquartered in Beer Tuvia next to Kiryat Malakhi, with a manufacturing plant in the Izrael Valley. The company, which imports, manufactures and markets food products with an emphasis on meat, was founded in 1916 as a family owned butcher in Tel Aviv’s Carmel market.

Published by Globes, Israel business news – en.globes.co.il – on October 11, 2022.

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