Acquisition of Hamashbir Le’Zarchan

Acquisition of Hamashbir Le’Zarchan

Our Firm represented the Shavit Group in the acquisition of Hamashbir Le’Zarchan (Israel’s largest department store chain). The process began with the publication of a tender by the Blue Square Co-op chain, the parent company of Hamashbir Le’Zarchan, to sell its shares in Hamashbir Le’Zarchan. Our Firm represented the Shavit Group in the tender process, which was not completed because of a Court Order to stay proceedings against Hamashbir Le’Zarchan. Trustees and a Special Administrator were appointed to manage the chain’s activities. Because of losses incurred during the stay of proceedings, the Trustees sought to begin liquidation proceedings. The District Court granted our request and ruled that the liquidation proceedings be suspended until the negotiations were completed with the Shavit Group. The negotiations with the Trustees and the Special Administrator were successful, and an agreement was signed between the Shavit Group and the Trustees to acquire the chain’s assets. After the District Court’s approval, the ownership of Hamashbir Le’Zarchan assets was transferred to the Shavit Group, and from that date onward, the assets are managed by the Shavit Group.