Global Automax, a car importer in parallel imports, on its way to the stock exchange. Tommy Announced the signing of a Memorandum of Understanding for the Global Automax Merger against the allotment of shares from Tommy.
Tommy , Which previously operated in the Internet field, sold at the beginning of the year the only activity it had left and actually becameStock market skeleton, Whose control was acquired about six months ago by Medigus. The sale of the activity came amid fears that the company would not meet the bond repayments it raised in Tel Aviv in 2018, and after a debt settlement had already been signed with the holders, a buyer was found for the activity and the deal made turned Tommy into an inactive company. At the end of the second quarter, Tommy had $ 5 million in cash. Its market value on the stock exchange is about NIS 20 million, but it is suspended from trading, and at the same time is also expected to be deleted from trading on the London Stock Exchange.
According to Metomi’s report, the agreement with Otomax, if implemented, will lead to the completion of Otomax’s existing shareholders with 53% -73% of Metomi’s share capital, subject to raising capital and meeting targets. According to the report, the companies are completing the due diligence and working on a binding agreement. The signed Memorandum of Understanding is valid for 60 days allowing Tommi exclusivity, but still not binding.
Global Automax, owned by businessman Yinon Amit, a former senior member of the Alber leasing company, is considered one of the largest parallel car importers in Israel. The company mainly specializes in importing Toyota, Jeep and Volkswagen vehicles, but according to data from the Ministry of Transportation, it also holds a license to import Hyundai, Mercedes, Chrysler and Jeep vehicles. The company has six branches around the country and according to industry estimates it markets hundreds of vehicles a month.
The company has expanded its activities in recent years and even took part in “institutionalized” marketing channels such as sites for marketing zero-kilometer vehicles and the Hot Consumer Club. It should be noted that parallel importers do not have to invest in building an array of spare parts and garages because the responsibility for handling the vehicles rests with the regular importers. However massive imports of new vehicles is a capital-intensive activity, requiring extensive financial resources. It is therefore speculated in the industry that Automax’s attempt to become a public company through a merger with a stock exchange skeleton is intended to raise significant capital for the purpose of expanding imports in the coming years. Automax is also in contact with Chinese car brands and the move may be intended to enable it to become a regular importer of vehicles made in China, in parallel with the regular import activity.
Recall that recently learned of the entanglement of Global Automax: the company is credited with attempting to defraud the Ministry of Transportation and obtain a permit and licenses for parallel imports on the basis of forged agreements. The suspicion is that after the licenses were obtained, the company smuggled jeeps into Israel at a cost of over NIS 7 million.
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