Alon Blue receives offer to purchase Blue Square outstanding shares

By Mark Reccek

Bethlehem, Pa., Jan. 14 – Alon Blue Square Israel Ltd. said it received an offer from Big Shopping Centers Ltd. and Mega Or Holdings Ltd. to purchase 53.8% of Blue Square Real Estate Ltd. (BSRE) outstanding shares, according to a news release.

The release noted the offer is open for acceptance until 5 p.m., Israel time, Jan. 18.

The purchase agreement would be subject to approval of the Israeli Antitrust Authority and other required parties, including bondholders and financial institutions, as well as a decision by the Israeli District Court overseeing the arrangement of Mega Retail Ltd. the release said.

The offer stipulates the purchasers will deposit NIS 100 million into a designated escrow account as a down payment. The release said if such conditions are not met within 60 days of deposit, the amount will be returned to the purchasers.

Additionally, the release said within 30 days of execution of the purchase agreement the purchasers would pay to the company half of the purchase price, minus the amount held in escrow. The remaining purchase price would be transferred to the company within 60 days of execution of the purchase agreement.

According to the release, Alon Blue has not made a decision whether to sell its interest in BSRE.

Alon Blue Square is based in Rosh Ha’Ayin, Israel, and owns and operates supermarkets and specialty stores.

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