"Feelings of missed opportunity": The decision to give up control of Mitronics shakes the kibbutz

Kibbutz Yizre'el is considering giving up control of Mitronics after the company accumulated debts of about 600 million shekels. Fimi Fund, managed by Yishai Davidi, is examining a controlling stake acquisition and received a short exclusivity period. The decision sparked an uproar among kibbutz members, who feel a sense of missed opportunity given the company's current low valuation compared to its peak value of 9.1 billion shekels in 2021.

Kibbutz Yizre'el, which holds 56% of Mitronics shares, is considering relinquishing control of the company in exchange for a capital injection. The company has accumulated debts of about 600 million shekels, and financing costs are weighing on its operations. Fimi Fund, managed by Yishai Davidi, is examining a controlling stake acquisition and received a short exclusivity period. The decision sparked an uproar among kibbutz members, who feel a sense of missed opportunity given the company's current low valuation (250 million shekels) compared to its peak value of 9.1 billion shekels reached in 2021. The CEO of the holding company, Idan Zils, published a reassuring message to members but emphasized that this involves a massive dilution of the kibbutz's holdings, reducing it from control to a minority shareholder. Zils noted that Fimi's due diligence checks are expected to last 40 days.