Tnuva plans a Tel Aviv stock offering at a valuation over NIS 10 billion
Tnuva plans a public stock offering at a valuation over NIS 10 billion.
The short version
- Bright Food controls the massive Israeli food company with a 75 percent stake.
- Kibbutz organizations hold the remaining 25 percent of the business.
- Previous public offering attempts in 2021 stalled amid partner disputes.
Tnuva, Israel's biggest food giant, is once again preparing for a public offering on the Tel Aviv Stock Exchange at a valuation that could exceed NIS 10 billion, according to Globes. Company executives have already sought legal advice on the move, slated for next year, and have begun a series of meetings with capital market players to promote the offering.
This represents an early stage of preparation after previous plans never materialized. Tnuva is controlled by Bright Food, the Chinese state-owned food and agriculture conglomerate, which acquired its 75 percent stake in 2015 from private equity firm Apax Partners and Mivtach Shamir in a deal valued at NIS 8.6 billion.
A previous attempt to advance a public offering in 2021 met with opposition from kibbutz organizations, which hold the remaining 25 percent of the company, leading to a sharp dispute between the parties. Tnuva CEO Gadi Cunia previously noted that the profitable and growing company did not strictly need to raise capital, though an offering could offer other advantages.
If the current effort culminates in a public offering at the desired valuation, it will rank among the largest offerings ever seen on the Tel Aviv Stock Exchange. The renewed attempt follows a wave of offerings by food companies over the past year, including meat producer Baladi and Gad Dairies. Investors will watch whether this massive kitchen staple finally makes the leap to the public board.
