The Israel Discount Bank’s IDB Development Corporation has paid $41.5 million to buy out its Canadian partners in the Supersol Ltd. supermarket chain, a move which stunned Israel’s financial community when it was announced on Sunday.
The Canadian investors, led by Charles Bronfman of Quebec, helped found Supersol — the most profitable supermarket chain in the country — 30 years ago, and had been its dominant shareholders ever since.
The purchase price was lower than the company’s $42.8 million market value on the Tel Aviv stock exchange at the end of last week.
A statement issued by Bronfman’s Claridge investment group said that the money from the sale would be used to make other investments in Israeli export-oriented enterprises.
The IDB purchase will give it 38.09 percent of Supersol’s share capital and 46.82 percent of the company’s voting rights.
Together with the 26.61 percent of share capital and 28.23 percent of voting rights it already holds, the bank’s stake will now be 64.7 percent of capital and 75.05 percent of voting power.
Supersol last year increased its net earning by 12.3 percent to 19.6 million shekels ($10.9 million), on sales of 704.2 million shekels ($391 million).
The biggest competitor to the privately owned supermarket chain is the Histadrut’s Co-op chain.
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