Dan Members Sell 5% Stake for 132 Million NIS as Buyout Deal Concludes
Dan Public Transportation completed its buyout deal as 177 members sold a 5% stake for 132 million NIS. The investor group now holds 57%, while members retain 43% ahead of a potential IPO and business expansion.
A total of 177 Dan member-shareholders have sold all or part of their shares in the second and final stage of the buyout deal for Dan Public Transportation, which has now been completed. The members sold approximately 5% of the company's shares for a total of 132 million NIS, distributed proportionally among the sellers.
With the completion of the transaction, the investor group—led by Dan CEO Ofir Karni and institutional entities—now holds roughly 57% of Dan Public Transportation, while the members retain about 43% of the shares. Prior to this second stage, Dan members held about 48% of the company. The original plan was to acquire up to 23% of the shares from them, representing about half of their joint holdings, but the actual volume of sales fell short of the investor group's expectations.
Strategic Growth and Market Expansion
The decision by many members to hold onto a larger share of the company may reflect strong confidence in management's ability to develop Dan and enhance its value ahead of a potential IPO, alongside a desire to maintain partnership in a company where they worked for decades. This continued retention comes against the backdrop of Dan's expanding operations, which recently acquired the transportation firm Masei Sha'asha and signed an agreement to acquire the public transit company Tnufa.
In addition to these acquisitions, Dan is participating in infrastructure tenders for light rail projects in Tel Aviv and Jerusalem and operates the fast lanes project. These strategic moves broaden the group's footprint and are expected to support its ongoing growth trajectory.
Shareholder Choices and Deal Structure
A total of 1,078 veteran Dan members, many of whom are already retired, faced a choice between cashing out or continuing to hold shares in a non-traded company. The proposed framework offered around 600,000 NIS gross for selling half of a member's holdings and up to 1.2 million NIS for selling them entirely. The actual volume available to each participant depended on the total number of participants and the volume of shares requested for sale within the predefined cap.
In the first stage of the transaction, the investor group acquired the holdings of Value Fund and LBH in Dan Public Transportation, reaching a stake of about 52%. That initial stage was finalized at the end of June following approval from the Israel Competition Authority. The acquisition of an additional 5% from the members now concludes the second stage and finalizes the deal.
The overall transaction across both phases was originally valued at approximately 2.1 billion NIS, based on an effective valuation of roughly 2.8 billion NIS for Dan Public Transportation. Although the members sold fewer shares than planned, the investor group retains full control of the company and the ability to steer its management and business strategy, while Dan members remain partners in the company's future growth and associated risks.
