Emblaze LD (DI) Share Discussion Threads

[moneyman18] 03/4/2014 11:26

RED BULL 2

[colinhy] 03/4/2014 10:38

2014 /PRNewswire/ --

G. Willi-Food Announces its Entrance into the Soft Drinks Market as it Becomes the First Israeli Distributor of Stevia Sweetened Cola


G. Willi-Food International Ltd. (NASDAQ: WILC) ("Willi-Food"), a global company that specializes in the development, marketing and international distribution of kosher foods, today announced its entrance in to the soft drinks market and its launch in Israel of the "Green Cola" brand, a kosher carbonated soft drink naturally sweetened by stevia plants.

Green Cola has been marketed by EPAP S.A, a private Greek company, since 2012, and it is positioned as a specialized product in the diet soft drink market. Green Cola is EPAP S.A's leading brand product and is currently sold in Greece, Cyprus and Australia. The diet soft drink contains several nutritional benefits compared to competing soft drinks in the market. It is naturally sweetened from the stevia plant extracts, and does not contain any sugar. Also, the caffeine in Green Cola is derived from a natural source, green coffee beans, and there are no perservatives in Green Cola. A can of Green Cola contains two calories and does not contain aspartame or any other artifical sweetner.

Mr. Zwi Williger, Chairman of Willi-Food commented, "In order to compete with Coca-Cola, Pepsi Cola and RC Cola, much effort is needed to enter into the crowded market, and so we have decided to pursue a product not currently available in Israel. In the beginning, we considered developing a private brand and through our search we uncovered this new innovative brand. We believe that stevia is a leading trend in the food product industry and will be an international hit in the near future. Stevia, as a natural sweetener, has emerged as a very popular sugar alternative in the food product industry. With the launch of Green Cola, we are providing the consumer an innovative new product that emphasizes our direction to promote healthy, nutritional products that do not compromise our desire to maintain a quality of taste."

[moneyman18] 02/4/2014 23:22

I am not sure if it will be.

[hotfinance14] 02/4/2014 19:17

Nobody knows yet.

[cascudi] 02/4/2014 19:13

does anybody know when suspension will be lifted?
sorry if someone has already questioned this

[fatoomch] 02/4/2014 12:52

Two elderly Jewish brothers - ffs they're 59 and 57. If anyone called me elderly at 57 I'd bash 'em with me zimmer frame!

[waterloo01] 01/4/2014 14:14

Great stuff. Cheers

[colinhy] 01/4/2014 14:02

An interesting trade between the principal shareholders and the holding company , Emblaze Ltd. .

An extremely interesting trade has recently been arranged, as further indicating that Willi -Food may be a bargain . The company is run by two elderly Jewish brothers Zwi and Joseph Willinger . Zwi and Joseph founded Willi -Food in 1992. The brothers own total 58% of Willi -Food Investments Ltd. . (WFI ), which owns 58% of Willi -Food (G. Willi - Food International Ltd. . ) . Willi -Food is acting mainstay of the holding company. In early March, the brothers sell their stake in WFI to the holding company , Emblaze Ltd. . Controlled by the Ukrainian billionaire Alexander Granovsky , the brothers have a good relationship in advance.

Granovsky is known to be an international businessman , in contrast to the two brothers , and the primary reason for the brothers' sales have probably been that Zwi and Joseph looking Willi -Food International adventures in better hands with Granovsky , who has long shown an interest to invest in Israel's food industry . Zwi has announced the company's webcast Q4 2013 to Granovsky has already presented the brothers for 3-4 acquisition targets in the U.S. market , which is currently in the process of exploring.

The deal between WFI and Emblaze Ltd. . expected to be completed in Q2 2014. The plan is that the brothers continue to drive Willi -Food for a minimum of 18-36 months with possibility of extension. If the brothers terminate their contracts ahead of time will result in a six -year suspension from starting a competing business to Willi -Food . The brothers' age in mind ( Zwi and Joseph are respectively . 59 and 57 years) , so it's hardly their plan to start a new business.

The market reacted to the sale by sending shares down 15% over two days, but it seems that the deal has been misunderstood , because at that time just sent a message out that the brothers had chosen to sell their share of Emblaze Ltd. . This could in itself sounds very negative , why would the company's two founders suddenly decide to sell their own business? They forgot , however, just to mention that Granovsky had bid about 76.6 m USD for the brothers' interest in WFI , which corresponds to a total value of the holding company of just 132 m USD (115 mUSD if you subtract the 17 mUSD which the holding company has in cash) . Next, remember that WFI only owns 58% of the Willi -Food , which is the holding company's only source of income . Emblaze Ltd. . have the opportunity to acquire a total of 61.8% of WFI to a total of 81.6 m USD .

Thus, one can assume that Granovsky estimates that the Willi -Food currently approx. 198.3 m USD worth ( if 58% is 115 m USD worth then 100% to 198.3 m USD worth ) , that is roughly twice the current market value. It becomes even more funny when you pull cash balances out of the deal , which Willi -Food business then valued at approx. 136.5 mUSD with a current enterprise value of only 38 m USD ( 198.3 minus 61.8 m USD cash) . Despite a few daring assumptions on my part, so does it look interesting, does not it? Granovsky has seen something of a growth potential , since he would pay so much for the brothers share . There are some related parties who clearly sees great potential in Willi -Food . Although some might think that I totally miss with these estimates , I see things being equal Willi -Food as an interesting investment opportunity regardless of the offer from Emblaze Ltd. .

Shareholder Return

Willi -Food is a small growing company with a very strong balance sheet . Will be distributed no dividends when profits are invested in the company. This is , in my view makes sense, since it makes no sense to distribute money to shareholders when they in fact can do more good in the company and thereby create long-term shareholder value. The management is, however, open to a potential share buyback program in 2014 , as also the management is aware that Willi -Food is affordably priced . Willi -Food is a good investment for the company itself , as the share buyback is a sensible way to pay the money back to shareholders if the company is trading at a fair or undervalued price - especially in terms of net asset value. This technique increases the remaining shareholders' share of the company's assets and profits - including Higher EPS and NAV to follow. Management is also very conservative and cautious in terms of capital , and as I have mentioned in several places , so saves you money to one or more strategic acquisitions - probably in the United States .

risk Factors

Despite the fact that Willi -Food is a very interesting company , then there is , as with all companies , many risk factors to consider. I will try to mention some of the key below.

First of all, there is a currency risk in that company's main revenue takes place in Israeli shekels but appears in both ILS and USD accounts ( 1 USD = 3.5 ILS ) . These can also include potential political and social uncertainty in Israel and rising food prices. The competition in the kosher industry is also significant , and Willi -Food must be able to continue to adapt and expand its product range with appealing kosher products. A growing market should also mean increased competition in the long term . Arla accounted for 47 % of Willi -Food milk deliveries in 2012, which puts Arla in a strong position of power in cooperation with Willi -Food . Zwi Willinger has said that working with Arla is strong and lasting . In March 2015 expiring contract, but management seems confident that this renewed 5-10 years . Let's hope it continues . Willi -Food dairy sales amounted to approx. 20 m USD in 2012, of which Arla supplies therefore must stand for about 10 mUSD of sales.

Two major chains in Israel ( Shufersal Ltd. . And Mega Retail Ltd.). Was gathered around . 32% of Willi -Food sales in 2012, but Willi -Food products are gaining market share , and there is no indication that any of the chains would be interested to stop cooperating . These two collaborations are not contractual equally and chains demand for Willi -Food products may vary from year to year. The company is experiencing , however, a growing demand .

Currently, Willi -Food is a large net interest income from their capital stock (net interest income in 2013: 3.5 m USD ) , and in the short term, a great investment is likely to result in a decrease in interest income . You then have to assume that the company through investment manage to create additional value and profit in the long term , but even here there is obviously a risk that a potential acquisition are not getting the desired long-term effect (normal acquisition and investment risk). If the deal with Emblaze Ltd. . goes down the drain , it can of course also affect the market value negatively , but you must remember that Willi -Food is an interesting and inexpensive company regardless of trading Granovsky . Key people also have high value in the company , and it is therefore hoped that Zwi and Joseph Willinger can be replaced with one or more new competent and skilled business people when the time comes.

conclusion

Willi -Food is an interesting investment opportunity for patient investors . It is a modest presence in the U.S. and Europe, and it would be good to see an acquisition in the U.S. market in 2014 , as Willi -Food can really grow internationally and have used some of the large capital stocks that are currently waiting to get out and work. Management also puts strong up to that in 2014 expects to execute an acquisition . It is hoped that cooperation with Granovsky and Emblaze Ltd. . runs smoothly , that the transaction is completed and that he can help Willi -Food to grow outside of Israel . Perhaps his plan to buy Willi -Food of the stock market ? In this case, it will probably be at a significant premium .

The company is trading very cheap in terms of ratios , which is odd for a company that is growing so resistant without debt and expects continued growth . It is also interesting that the company trades at a NCAVPS of 7.3 USD with a current share price of 7.7 USD.

The extremely solid balance sheet, the positive outlook and the very low pricing creates an excellent safety margin despite a cash flow affected by negative changes in working capital. Downside seems therefore to be limited while the upside is great. Why Willi -Food traded so cheaply is not to know. It may, because the company is small with limited liquidity of the share. It runs probably under the radar of the major institutions due to this. Had the company had its main activities in the United States had the case and the pricing might have been different , and perhaps keep some away because they see it as a little risky share in a developing country ? I estimate ceteris paribus , that here is a situation where the underlying value is significantly lower than the current market value .

If it sounds interesting , so I advise strongly reader to undertake its own due diligence, and this is not a BUY recommendation. I've probably forgotten or overlooked numerous important factors that speak for and against this company as an investment. Below the reader can find various relevant sources of information . Willi -Food can be found under the ticker , WILC , on various financial sites .

A preliminary financial statements for 2013 (it should be noted that the lending of 18.8 m USD , which is recorded in the balance sheet short-term assets that have already been repaid with interest income of approx. 120 to USD )

[hotfinance14] 31/3/2014 19:28

He will be out soon then.

[gobbyash] 31/3/2014 18:36

I have no skin in this game and my brain melted in the dotcom boom and bust but think he got 4 years with 1 year suspended :-)

[hotfinance14] 31/3/2014 16:47

How long did he get Gobby ?

[gobbyash] 31/3/2014 15:35

Current Occupation: Prisoner at Prison

hxxp://il.linkedin.com/in/elireifman

I wonder how long he has left to serve? Top bloke. Hope his spirit remains undiminished.

[moneyman18] 28/3/2014 08:43

TELL US ABOUT IT !!!

[cascudi] 28/3/2014 07:09

from today statement
total equity 138m$ = 86m£ (versus current market cap of 48m£)
total assett = current assett

[cheeky13] 27/3/2014 14:48

Now a cruelty to animals company.

[j777j] 27/3/2014 12:08

Last I looked this was a video streaming technology company that raised £200,000,000 at the height of the dot.com boom.Then it became a handset manufacturer.Now a supermarket chain?

[moneyman18] 27/3/2014 11:38

What will this mean to small shareholders ?

[m welsh] 27/3/2014 10:49

Shown on Emblaze website today:

EMBLAZE LTD - Company Update
PR Newswire

London, March 26

Emblaze Ltd (LSE:BLZ)

("Emblaze" or "the Company")

Company Update

Tel Aviv, Israel, 27 March, 2014

Capitalised terms will have the meanings ascribed to them in the Company's
announcement of 3 March 2014.

Further to the Company's announcement of 3 March 2014, the Company announces
that on 26 March 2014, the Israeli anti-trust authority approved the
consummation of the Transaction (the "Antitrust Approval").

Following receipt of the Antitrust Approval, the Condition Precedent has been
fulfilled. Accordingly, the Company will, within seven (7) business days of the
date of the Antitrust Approval (but in any case not before 3 April 2014)
publish the Special Tender Offer.

The additional stages of the Transaction were described in the Company's
announcement of 3 March 2014, and the Transaction is expected to be completed
on the day on which the Special Tender Offer is successfully completed or
within seven (7) business days of the date on which the Special Tender lapsed
(in the latter case, unless the Sellers have elected, within seven business
days of such date on which the Special Tender Offer lapsed, to rescind the
Agreement and the Company did not elect, within nine (9) business days of such
date on which the Special Tender Offer lapsed, to exercise the Call Option).

Enquiries:

Eyal Merdler, CFO: [e-mail]

The Emblaze Group has been traded on the London Stock Exchange (LSE: BLZ) since
1996.

[moneyman18] 23/3/2014 23:24

Those who sold shares at 75p may well look to re invest

[waterloo01] 22/3/2014 16:31

cheers, interesting read. Have a suspicion - when we open for trading - it will be at a much higher SP!

[colinhy] 22/3/2014 15:54

Mar. 21, 2014

Igor Novgorodtsev, Lares Capital LLC
Hedge fund manager, small-cap, long/short equity

Willi-Food International Should Be Taken Private For A Potential 100% Gain

Summary

Willi-Food International was already trading at a large discount to its fair value.

The market misinterpreted the owners share sale to an investment group as "an insider sell".

The new owners should take the company "private" easily realizing a tremendous gain.


The purchase offer

As I mentioned before, the offer is complicated and requires careful analysis to understand the actual price Emblaze Ltd. (the purchasing company) is willing to pay the Williger bothers. While figuring out the share price offered for WFLD is straightforward, the price put on WILC is somewhat matter of opinion as some might argue that a certain discount to its fair value can be justified. At a minimum, we can determine how much every discount is worth and what circumstances can make such a discount disappear.

If all goes well, Emblaze will end up with a 63% stake in WLFD at NIS 34.52 price (about $10 a share). Today, WFLD is trading at about $7.4 on TASE.

Why Willi-Food was bought

While the formal buyer of the Williger brothers' stake was an Israeli Emblaze Ltd., which trades on London Stock Exchange, the real buyer was Israeli/Ukrainian businessman Alexander Granovsky. Born in Ukraine and having made a fortune in Ukrainian hotels, airports, alcohol, and real estate, Granovsky has become more religious and today is a member of Chabad, an orthodox Jewish denomination known for considerable business acumen as well as unwavering Zionism. Granovsky wanted specifically to invest in an Israeli company. Due to recent political turmoil in Ukraine, the timing of moving investment in Israel makes even more sense. The fate of many of Granovsky's properties, such as Simferopol airport (in the center of Crimea), is no longer clear.

Granovsky's investment vehicle BGI Investments acquired Emblaze Ltd., essentially a shell company. Emblaze used to operate two mobile companies Emoze Ltd. and Else Ltd. but it seems very little is left from these operations today.

Granovsky originally bought Emblaze for the purpose of rescuing IDB Holding Corp. Ltd., an Israeli conglomerate struggling with excessive debt load. He teamed with the Williger brothers and Nochi Danker to try to inject capital but the deal was lost to a rival group.

Having secured capital, but not the assets, he turned his attention to Willi-Food. Based on his recent activities, he appears to have a genuine interest in running an Israeli company rather than participating in financial shenanigans, as the negative market reaction to the share purchase announcement seemed to indicate.

Conclusion

I expect that Granovsky will look to streamline Willi-Food structure. The most obvious move is to use WILC cash to buy-out the minority shareholders and delist the company from NASDAQ. WILC doesn't need to raise new equity as Granovsky has deep pockets. Staying public provides little benefit a sharp discount to it fair value. When WILC taken private, I expect all three discounts: excessive cash, lack of control, and buyout premium to disappear, resulting in doubling of the WILC price.

[colinhy] 20/3/2014 13:25

Calendar for: Magistrate Judge Paul S. Grewal

Tuesday, Apr 8 2014 01:30PM

Emblaze Ltd. v. Apple Inc.
Motion for Partial Summary Judgment (SPECIAL SET)
Motion for Summary Judgment (SPECIAL SET)

[adg] 19/3/2014 15:56

thanks sladdjo for taking the time to update us

[sladdjo] 18/3/2014 15:26

Quick update from the call - WILC likely to try to use some of their cash to purchase some food companies. Apparently they are in talks with 3 or 4 companies, including a dairy company and a US company, but will wait until after the end of Passover (21st April) before completing anything, as Passover is a very busy season for them.

WILC say that having the BLZ owners on board is good for the company as it opens doors for them. Granovsky et al have good connections outside Israel and likely to help with deals.

[sladdjo] 18/3/2014 13:19

Earnings call at 3pm - hopefully get more of an update. Can listen in on
hxxp://public.viavid.com/index.php?id=108184