Sakal prepares for public offer

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The Israeli operator is to merge its sports and fashion retail busineses into a single holding company, and is seeking a financial partner prior to flotation

Sakal Group is to convert its sports and fashion retail divisions into a holding group in preparation for a public offering, according to Israeli business news service Globes. The Israeli operator, which recently gained the electronics duty-free concession at Tel Aviv Ben Gurion airport's third terminal, will operate ten companies as independent firms under the new holding group, which has been mooted to allow a partner access to investment prior to Sakal's flotation.

A group hired to value Sakal has anticipated that annual turnover at the company's 90 sports and fashion outlets could triple to NIS1bn in three years.

According to Globes, Sakal's turnover in 2003 was equal to that of 2002, although the company managed to grow from a NIS60m loss to break even last yeas. The report said that Sakal's domestic business subsidises its loss-making duty-free operations, and that while the Israeli electronics market contracted some 30% last year, both Sakal's electronics and its sports outlets achieved growth.