Willi-Food to delist its shares from NASDAQ and consolidate trading in Tel Aviv
G. Willi-Food International has announced the delisting of its shares from NASDAQ and the cessation of SEC reporting obligations. Trading will be consolidated exclusively on the Tel Aviv Stock Exchange.
Three decades after its IPO on NASDAQ, G. Willi-Food International, a subsidiary of Willi-Food Investments (58.9%) controlled by brothers Yossi and Zvika Williger (64.9%), announced this morning the delisting of its shares from NASDAQ and the consolidation of trading on the Tel Aviv Stock Exchange. Once the delisting takes effect towards the end of the month, the company intends to deregister and cease reporting obligations to the U.S. Securities and Exchange Commission (SEC). The Tel Aviv Stock Exchange will become the sole official trading venue for Willi-Food shares, and shareholders will be able to continue trading ordinary shares on the Tel Aviv Stock Exchange even after the NASDAQ delisting and SEC deregistration.
Background of the decision and board rationale
The company's board of directors determined that its current dual-listing structure is unnecessary in today's global trading environment, where investors have access to securities in international markets regardless of where they are listed. The company added that maintaining a single listing on the Tel Aviv Stock Exchange will allow it to focus on business development while reducing costs associated with registration in the United States, where the company's operations are not focused. The company further noted that its strategy, operations, and ability to grow its business will not change as a result of consolidating its share trading on one exchange.
Schedule and procedure
The company expects to file a Form 25 with the SEC regarding the delisting of its ordinary shares from NASDAQ within about two weeks, with the last trading day on NASDAQ expected towards the end of the month. No action is required from investors at this stage. After the delisting, the shares will remain listed and continue to trade on the Tel Aviv Stock Exchange. In addition, the company expects that the shares will be available for trading on the OTC (Over-The-Counter) market in the U.S.
Investor presentation and logistics assets
Following the announcement, the company published an investor presentation highlighting its advantages in the food market. The company owns a logistics center with a total built-up area of 8,600 square meters on a plot of about 19 dunams, used for storage and distribution of dry, chilled, and frozen products, recorded at a historical value of 27 million shekels. Currently, the company is building a chilled and frozen logistics center with an investment of 120 million shekels, which will serve as a platform for developing the deployment, cutting, and packaging of hard cheeses. The company estimates that the new logistics center, expected to be completed in the fourth quarter of this year, will contribute to cash savings in operating expenses of about 10 million shekels per year at 60% capacity.
Company operations
Willi-Food is engaged in the development, import, marketing, and distribution of over 650 food products worldwide. The company markets and sells its food products to more than 1,500 customers and 3,000 points of sale in Israel and around the world, including large retail chains, private supermarket chains, wholesalers, and institutional clients.
Recent financial results
Yesterday, Willi-Food published its results for the second quarter, which were marked by stagnant sales attributed to the timing of the Passover holiday, alongside a sharp improvement in gross and operating profitability following the strengthening of the shekel against the euro and the dollar. Willi-Food closed the second quarter with a 38.5% decrease in net profit, amounting to 12.7 million shekels, following a sharp decline in financial income compared to the same quarter last year.
