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Acquisition of the New Hamashbir Lazarchan
  • Our office represented the Shavit Group in its acquisition of the assets of Hamashbir Lazarchan. The process began with the publication of a tender by the Blue Square Co-op for the sale of its holdings in Hamashbir Lazarchan. The tender process in which we represented Shavit was not completed, as a stay of proceedings order was served on Hamashbir Lazarchan in November 2002 and trustees and a special manager were appointed for it. At a certain stage, in light of the losses sustained during the period that proceedings were stayed, the trustees requested that liquidation proceedings be commenced for Hamashbir Lazarchan. However, the President of the District Court which was hearing the case, acceded to our request and ordered that the liquidation proceedings be suspended in order to thoroughly exhaust the negotiations that were being held with the Shavit Group for the acquisition of the assets of Hamashbir Lazarchan. Indeed, the Shavit Group continued to conduct intensive negotiations with the trustees and the special manager until a letter of principles was signed with the Shavit Group for the acquisition of the assets of Hamashbir Lazarchan. At that stage, other groups joined the race, including the Sakal Group, which notified the Court that it was prepared to compete with the Shavit Group for the acquisition and that it would adopt the same outline agreement as the Shavit Group. The Court appointed the review committee as a tenders committee and charged it with managing the bidding process between the Sakal Group and the Shavit Group. At the end of the bidding process, the review committee recommended entering into an agreement with the Shavit Group. Accordingly, during February 2003, the Court ratified the agreement with the Shavit Group and, pursuant thereto, the assets of Hamashbir Lazarchan were transferred into the possession of the Shavit Group.