G. Willi-Food Int'l unit Gold Frost to raise $11m on AIM
TASE-traded Willi-Food Investments' capital gain on the float will be NIS 30 million.
Tali Tsipori 8 Jan 06 17:16
Gold Frost Ltd., a sub-subsidiary of G. Willi-Food International (Nasdaq: WILCF), is planning to raise £5.9 million (approximately $11 million) on London's Alternative Investment Market (AIM), at a company value of £24 million (approximately $42 million), after money.
UK-based investment bank Corporate Synergy Plc is expected to lead the initial public offering (IPO), which is scheduled for the end of February or early March. The IPO is not expected to include an offer for sale by controlling shareholder G. Willi-Food International, which has a market cap of $28 million on the Nasdaq Small Cap index. A controlling interest of G. Willi-Food International (74%) is owned by TASE-traded WLFD)Willi-Food Investments Ltd.
Willi-Food Investments refused to comment on the report.
G. Willi-Food International is Israel’s largest food importer, and a single-source supplier of an extensive range of quality Kosher food products.
The reason for the IPO is believed to be to enable the company to expand its global activities, principally in the US retail food market, but elsewhere as well. One of the company's partners is Danish dairy producer Arla Foods, whose products are distributed in Israel by G. Willi-Food International.
According to its recent financial report, G. Willi-Food International acquired control of Gold Frost in May, 2001, for $78,000. Willi-Food Investments will make an estimated NIS 30 million capital gain on the upcoming IPO. Willi-Food Investments' current market cap on the TASE is NIS 100 million.
G. Willi-Food International announced today that it expects to report approximately 15% revenue growth in the fourth quarter of 2005 compared to the fourth quarter of 2004.
Willi-Food president and COO Zvi Williger said that 2005 was a "challenging year" and that his company expected 2006 to be much better. "In the year ahead, we expect to continue ramping up the business, both through growth in our domestic market and by initiating distribution in additional territories."
Willi-Food expects to publish its financial results for the fourth quarter and the full year of 2005 in late March 2006.
On November 21, 2005, the company's board of directors declared a cash dividend of $0.12 per share payable to its shareholders as of January 11, 2006. The cash dividend will be paid on January 25, 2006.
Published by Globes [online], Israel business news - www.globes.co.il - on Sunday, January 08, 2006
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