Meanwhile, an unnamed private fund has signed a nonbinding letter of intent to buy participation units for $62.5 million from GPM President and CEO Arie Kotler’s Arko Holdings Ltd. and from U.S. investment fund Davidson Kempner, according to Israeli newspaper Globes.
The unnamed fund has tentatively agreed to buy all Arko and Davidson Kempner's new preferred participation units in GPM for $47.5 million. The new units provide a $37.5 million repayment of the investment and an 8.75% annual return. They are equally divided between Arko and Davidson Kempner, so each will receive $23.75 million. After the completion of the deal, the conditions of the preferred units will be changed and they will represent 7.5% of the value of rights in GPM's capital, providing their owners with preferred rights in divided distribution and more.
At the same time, the private fund will buy further 2.5% regular GPM participation units from Davidson Kempner for $15 million. After the sale is completed, Davidson Kempner will control 22.5% of the regular units, while Arko will continue to control 75%.
The unnamed fund may invest an additional $30 million directly in GPM to help expand the partnership, the report said.