Israel-based Alon Blue Square has entered into agreement to sell six supermarkets operated by Mega Retail of ‘YOU’ brand to Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. and C.N. Market Storages Ltd.
The agreement will see Mega Retail transfer its ownership rights of the concerned six supermarkets and also offload certain assets and equipment in these supermarkets.
The transaction is valued at NIS 26m excluding VAT.
The transaction closure is subject to satisfaction of certain conditions within 45 days of execution of the agreements. With respect to certain supermarkets, an amount to the tune of NIS 4,750,000 will be deducted from the transaction amount for each supermarket for which neither a deed of assignment nor court approval is obtained.
Mega Retail must obtain court approval for entering into the transaction; it should also obtain approval receipt from Anti-Trust Authority; two supermarkets need the approval from Mega Retail's board of directors, while two others need an agreement with the lessor as removal of such supermarkets from the agreement would reduce the transaction amount by NIS 4m per supermarket.
The 23 'YOU' brand supermarkets which the company has contracted to sell also includes supermarkets whose underlying real estate is leased by Blue Square Real Estate Ltd., a public company controlled by Alon Blue Square.
The sale closure is subject to approval from the corporate units of Blue Square Real Estate.
Alon Blue Square Israel operates in five retail segments in Israel. It operates a chain of 211 petrol stations and 220 convenience stores in different formats across Israel.
In the supermarket segment, Alon Blue Square operates through Mega Retail and owns 148 stores under different formats, offering a wide range of food products.
