Haifa Court Approves Sale of Panda Trading Applications for 4.4 Million NIS
The Haifa District Court approved the sale of Panda Trading Applications to one of its equal shareholders for 4.4 million shekels, valuing the tech firm at 8.8 million shekels following a bitter partner dispute.
The Haifa District Court (Economic Department) recently approved the sale of Panda Trading Applications, a 40-employee technology company, to one of its two equal shareholders for 4.4 million shekels paid to his partner. Judge Mohammad Ali accepted the purchase offer, which values the company at 8.8 million shekels, despite the buyer having previously supported its liquidation.
The company, specializing in software development and capital market solutions, became deadlocked in a prolonged dispute between its two 50-50 shareholders. In February of last year, the judge ordered a separation of forces through the sale of the company or its operations to a third party, after both owners stated they were not interested in buying out each other's shares.
However, efforts to locate an outside buyer—led by a court-appointed accountant with the assistance of investment bankers—yielded no results. Meanwhile, the company's financial situation deteriorated from a thriving, profitable business into a deficit-ridden enterprise suffering from cumulative losses.
By September, the accountant reported that the company was struggling to acquire new clients and that continuing operations under the existing framework was no longer viable. At this stage, one partner supported liquidating the company, while the other sought to pursue a solution that would ensure its survival.
Subsequently, the latter offered to acquire the company based on a valuation of 8.6 million shekels, arguing it was an opportunity to save it and preserve jobs. His partner objected, claiming the offer did not reflect true value and that liquidation and asset realization would yield higher returns.
Following these developments, the court ordered an auction between the two partners. During the bidding process, the objecting partner raised the offer by 200,000 shekels, while his rival refrained from improving his bid.
Judge Ali approved the sale to the higher bidder, overriding his partner's objections that his own closer ties to the company should have been prioritized and expressing fears that the buyer intended to liquidate the firm. The court emphasized that the competitive auction process dispelled concerns that the company was being sold below its true market value, as no concrete external offers had materialized.
Concluding the proceedings, the buyer will transfer 4.4 million shekels in exchange for his partner's 50 percent stake, thereby becoming the sole owner of the enterprise.
