Nahum Bitan continues to realize: Yochananoff acquires 5 stores for 68 m

0
5


Nahum Bitan Continues to realize branches: Network Johnoff Under the control of Eitan Yohannoff, it acquires five branches from the Bitan-Mega Wine Group for NIS 67.5 million. This, months after an explosion of a deal between the two for the sale of two other branches. These are branches located in Tel Aviv, Kiryat Shmona, Hadera, Tiberias and Afula, with a total commercial area of ​​about 8,600 square meters, and a gross area of ​​about 13,000 square meters.

The report submitted to the stock exchange by Yochananoff shows that the total sales volume in the branches in the first half of 2020 was about NIS 83 million. This is probably due to the accelerated purchases in the shadow of stocking up on the corona closure, so this is a figure that probably does not reflect an average of half.

Yohananoff intends to finance the payment of the consideration from its own sources, stating that “in order to maximize the potential sales from the branches,” it estimates that the total cost of renovating and carrying out adjustment work in the branches will be NIS 40-30 million for all branches together. Yochananoff further states that “the engagement in the transaction is in accordance with the goals and business strategy of the company, will allow it to increase the volume of its activity and expand its areas of activity.”

We recently revealed in “Globes” that Bitan Wines put up for sale 35 branches, which it offered for purchase in a group or individually to various competitors in the industry. The challenge for the group to sell these branches was, among other things, the relatively high rent burden.

This step takes place as part of the attempts to cut and streamline the group owned by Nahum Bitan, who a year ago was exposed in “Globes” because he ran into cash flow difficulties and delayed payments to suppliers. It now appears that these are just a handful of branches the chain wants to eliminate, and as far as its possible, the second-largest food retail group will try to sell more stores.

LEAVE A REPLY

Please enter your comment!
Please enter your name here