MIRA
INFORM REPORT
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Report Date : |
17.10.2007 |
IDENTIFICATION DETAILS
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Name : |
SUPER-SOL LTD. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
14.1.1957 |
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Legal Form : |
Public Limited Liability Company-- |
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Line of Business : |
A retail marketing chain, operating a nationwide supermarket chain. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name
SUPER-SOL LTD.
(Name in Hebrew pronounced: "Shufersal")
address
Old Industrial Zone
RISHON
Telephone 972 3 948 15 15
Fax 972 3 950 58 17
HISTORY
Originally incorporated as a private limited company, registered as per file No. 51-015652-4 on the 14.1.1957.
Converted into a public limited liability company and registered as such as per file No. 52-002273-2 in January 1959.
In 1980 published a prospectus offering shares to the public on the Tel Aviv Stock Exchange.
Shares were also listed for trading on the New York Stock Exchange in 1997, and were de-listed on 26.12.2002.
SHARE CAPITAL
Authorized share capital
SHAREHOLDERS
1. DISCOUNT INVESTMENT CORP. LTD. (DIC), 38%, a public limited company whose shares are traded
on the Tel Aviv stock exchange, part of the IDB Group, controlled by Nochi Dankner,
2. BRONFMAN FISCHER GAD INVESTMENTS LTD., 14.6%, controlled by Matthew Bronfman and Shalom
(Yakov) Fisher,
3. CLAL INSURANCE HOLDINGS LTD., 7%, an institutional investor,
4. Edgar Miles Bronfman, 4.4%,
5. SUPER SOL ASSETS LTD., 4.16%, a fully owned subsidiary,
6. Shares are also traded on the Tel Aviv Stock Exchange.
In March 2007 subject's main shareholder DIC signed an agreement with the BRONFMAN – FISCHER Group, according to which DIC will sell part of its holding - some 20% - to the BRONFMAN – FISCHER Group in consideration of US$ 214 million, in 2 phases.
On 25.9.2007 subject announced the conclusion of the 2nd phase, in which DIC sold BRONFMAN – FISCHER Group 5.7% of the shares in subject and in total some 19% in both phases.
DIRECTORS
1. Rafael (Rafi) Bisker, Chairman,
2. Avraham Bigger,
3. Nochi Dankner,
4. Shalom Yakov Fisher,
5. Ron Hadassi,
6. Zvi Livnat,
7. Ido Bergman,
8. Ami Erel,
9. Isaak Manor,
10. Oren Lieder,
11. Ms Sabina Biran,
12. Imri Tov,
13. Yehezkel Ofir.
GENERAL MANAGER
Ephraim (Efi) Rosenhaus
BUSINESS
A retail marketing chain, operating a nationwide supermarket chain.
Subject sells food and non-food products, which includes apparel, domestic electrical appliances, PC's and leisure products. In 2006 above non-food products categories generated some 7% of total sales.
Also dealing in yielding real estate, with overall area of 104,000 sq. meters.
Among largest suppliers: TNUVA (12.5% of revenues), STRAUSS
GROUP (9.3%), OSEM (7.3%), UNILEVER
Operating from headquarters in
As of 30.12.2006 total stores area operated by subject (226 supermarket branches) was 512,000 sq. meters (of which some 100,000 sq. meters are owned). In addition, subject operates from warehouses and logistic centers.
Having 9,900 employees (of which 1,000 are temporary or man-power employees), serving the SUPER-SOL Group.
MEANS
In November 2005, subject completed a
In February 2007 subject issued bonds, to be traded on the
Tel Aviv Stock Exchange, raising
Consolidated B/S show:
ASSETS 31.12.2006 30.06.2007
Current assets:
Cash
and cash equivalents 62 527
Negotiable
securities 46 147
Customers
990 1,015
Other
debtors 126 84
Stock __537 __543
1,761 2,316
Other investments 1 32
Long term loans 16 15
Real estate for investment 398 499
Fixed assets 1,983 1,930
Other assets and deferred expenses __747 __742
4,906 5,534
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LIABILITIES
Current liabilities 1,969 1,976
Other liabilities 1,472 1,899
Minority rights - (6)
Equity 1,465 1,665
4,906 5,534
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Current market value US$ 840.4 million.
There is 1 charge for unlimited amount registered on the company's assets, in favor of LEUMI LEASING LTD.
ANNUAL SALES
Consolidated Statements of Income
Year ended December 31st
2004 2005 2006
Revenues 6,232 6,614 9,153
Gross profit 1,650 1,748 2,397
Operating income 105 169 281
Profit before
taxes on income 42 99 174
Net income 18 81 121
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Note: The big leap in subject's 2006 sales was following the acquisition of the CLUBMARKET Supermarket Chain (see more below).
Consolidated revenues for the first half of 2007 were
OTHER COMPANIES
HANETZ IMPORTERS & EXPORTERS LTD., 100%,
HYPERKOL LTD., 100%,
ESTATE HOLDING COMPANY OF SUPER SOL LTD., 100%,
GIDRON INDUSTRIES LTD., 100%, manufacturing and suppliers of bakery products for subject's stores,
HYPER HAGAL HAYAROK CHAIN LTD., 100%,
SUPERSOL BIELSOL INVESTMENTS LTD., 50%,
ISRAEL SHOPPING MALL LTD., 50%,
HAKIRYA CENTER (
CLUBMARKET MARKETING CHAINS LTD., 100%,
KATIF LTD., 100%, dealing in dried fruit and vegetables for subject's stores,
ORBANI INVESTMENTS COMPANY LTD., 100%,
LEV HAMIFRAZ LTD., 37%.
NEAR EAST TRUST
M.M.M. FOOD WAREHOUSES CLUBS LTD., 100%,
SUPER-SOL DEVELOPMENT & INVESTMENTS (1983) LTD., 100%,
SHARONA PARDESE Y.D.E. LTD., 100%,
TINSHEET INVESTMENT CO. LTD., 100%,
SUPER-SOL FINANCE, LP, 64%,
B.Y. RETAIL, LP, 50%.
BANKERS
Main account:
Bank Leumi LeIsrael
Ltd., Central Branch (No. 800), Tel Aviv.
Also working with:
Bank Leumi LeIsrael
Ltd., Main Branch (No. 010), Tel Aviv.
Bank Hapoalim Ltd.,
Central Branch (No. 600), Tel Aviv.
Mizrahi Tefahot
Bank Ltd.,
CHARACTER AND
REPUTATION
There are several lawsuits against subject; none of them seems to be significant.
There are several pending motions for class-action against subject, all of which still have to be approved as class action lawsuits by the Court (who rarely approves such motions).
In April 2000 the Trade Restriction Authority representatives raided subject's offices, searching for evidence for binding agreements between subject and supplier. There has been no further mention regarding this affair since.
In July 2007 an indictment was submitted against subject, its General Manager and 11 branch managers for violating the Consumer Protection Law. Subject estimates its exposure in this field as non significant.
Apart from that, nothing unfavorable learned.
Subject is the largest retail chain in
According to the survey of Nilsen, subject's market share in
the local supermarket chains market was 37.7% in 2006, comparing to 25.1% by
Subject is one of the local largest advertisers, with advertising budget of over US$ 7 million in the first half of 2007; up 11% from the first half of 2006 (was US$ 15.5 million in whole 2006).
In January 2005 subject announced the implementation of a new strategic plan for the Group designed to keep its position as the leading retail chain. The chain was divided into 3 retail format stores; "Super-Sol Big" for hypermarkets, "Super-Sol Deal" for "heavy discount" concept stores and "Super-Sol Shelly" ("My Super-Sol") for neighborhood supermarkets. In addition subject operates the "Zol Po" sub-chain mainly targeted at the ultra-religious sector, and "Super-Sol Direct/Net-Sal" for shopping via the telephone.
In July 2005, subject signed a deal to acquire CLUBMARKET, Israel 3rd largest marketing chain, from its receiver after CLUBMARKET went into receivership, for a sum of NIS 764 million, as well as NIS 19 million for the stock. The deal included the hiring of 2,400 of CLUBMARKET'S employees. The deal was finalized on 15.2.2006. Subject intends to merge CLUBMARKET fully into subject.
In November 2005, subject signed a deal to acquire 50% in
NEW PHARM, a local drugstore chain, for a sum of
In February 2006, subject announced it will invest
In October 2006 sub launched a new credit card for its clients for non-banking credit and benefits (venture co-owned with PAZ-OIL Company). By mid 2007 subject reported issuing 110,000 credit cards.
In July 2007 it was reported that subject is considering
extending its own private label "Shufersal", which includes some 600
items (some 8% of sales) with a
Subject is part of the local leading concern IDB, one of the largest and most
influential in
Before investing in
subject, the BRONFMAN-FISHER Group held minority shares in subject's rival
In the beginning of
January 2007 Matthew Bronfman and Shalom Fisher sold their holdings (23.5%) in
Businessman Matthew
Bronfman comes from the wealthy Bronfman family of
Shalom Fisher also
owns the PALACE Group, with many other holdings.
SUMMARY
Good for trade
engagements.
Note: Both telephone numbers you provided are
disconnected. Please note correct ones in caption.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)