TEL AVIV, June 14 Six international companies
and funds have made it to the second round of bidding for buyout
group Permira's 61.3 percent stake in Israeli
irrigation firm Netafim, Israel's Calcalist financial newspaper
said on Wednesday.
The contenders are Mexican chemical firm Mexichem
; U.S. industrial technologies company Fortive Corp
, Singapore's Temasek Holdings, U.S. tools maker
Stanley Black & Decker, Chinese investment fund
Primavera and Chinese pipe maker Ningxia Qinglong.
The sale has set a minimum value of $1.5 billion for the
Netafim said in March it had hired Goldman Sachs to
handle a possible sale or public offering of the company.
Centerview and Bank of America were also appointed to
advise on the deal.
The company is hoping for a valuation of between 10 and 12
times its expected 2017 earning before interest, taxes,
depreciation and amortization (EBITDA) of around $120 million, a
banking source told Reuters in May.
Any offer reflecting a value of more than $1.8 billion
allows Permira to force the remaining shareholders to sell their
holdings in Netafim, Calcalist said. Kibbutz Hatzerim owns 32.7
percent of Netafim and Kibbutz Magal owns 6 percent.
A spokesman for Netafim declined to comment.
The date of the third round has yet to be set.
Netafim, which has 4,300 employees and 17 factories in 10
countries, provides irrigation products for agriculture,
greenhouse and mining applications.
(Reporting by Tova Cohen, editing by Louise Heavens)