The Fox-Wizel group notified the Tel Aviv Stock exchange this morning of an agreement with Heartland A/S, the investment arm of Danish billionaire Anders Holch Povlsen, on the purchase of an 8% stake in its TerminalX website in exchange for an investment of $21.7 million. The purchase is at a valuation of $250 million, Trend reports with reference to Globes.
Povlsen, who lost three of his children in a terrorist attack in Sri Lanka two years ago, has substantial holdings in a range of industries, including leading fashion brands and e-commerce sites such as British fashion site ASOS, and German fashion sites About You and Zalando.
Under the agreement, if an IPO of TerminalX takes place within the time stipulated in it, then close to the completion of the IPO Fox-Wizel will buy from the other shareholders and from company officers 49% of the share capital (pre-IPO) for $10 million, and will allocate to Povlsen shares in TerminalX that will represent 8% of the share capital after the allocation and before the IPO, for $21.7 million, as mentioned.
Povlsen will be allocated additional shares in TerminalX at a 15% discount, such that following this allocation he will hold 10.1% of the shares in the website. Completion of the deal is dependent on several pre-conditions, and to the share price in the IPO being higher that the share price in the purchase and allocation.
UBS is to serve as underwriter for the IPO and the transaction is being led by Value Base investment bank, which is leading the IPO for TerminalX.