Monday, August 21, 2006
I gave my money to a financial tightrope artist
Another lemon I put my hard earned money in is a financial organization called Enter Holdings formerly known as Solomon. This outfit had the intention of becoming a big investment bank, but it didnt happen. It lost 23% of its value from the moment I bought it.
The living spirit of Enter is one Amit Berger, a financial tightrope genius. He is now signaling that an IPO for supermarket chain Tiv Taam is on the way. Enter recently bought 50% of the chain, which was very cheap as it was an emergency salvatage: the TV made a documentary showing that this non kosher chain was selling putrid meat and ipso fact the chain was about to go broke. So the owners had to look fast for an angel, which appeared in the form of Berger.
The NIS 80 million debt will be secured by Tiv Taam shares. The money will be raised through a private placement of bonds convertible into shares in Tiv Taam. The bond issue is primarily intended to finance the acquisition of Tiv Taam, which was transacted at a value for the supermarket chain of $64 million. Apart from paying for its stake in Tiv Taam, Enter Holdings has also agreed to buy 33% of finance company Perfect for NIS 11 million, while it has cash and cash equivalents of about NIS 100 million only, most of which derives from a bond issue held earlier this year.
This man Berger is a financial artist. Is it a good investment? Unproven till now.