Bethel Finance: Tnuva chairman quits

www.bethelfinance.com
Tnuva Food Industries Ltd. chairman Shlomo Rodav has unexpectedly quit only a few months after being appointed. Rodav said that he is resigning due to differences of opinion with the company's owners. It is assumed that Rodav was referring to Apax Partners.

Sources inform "Globes" that Apax Partners partner Nico Hansen, who chairs the group's approval and portfolio review committees, came to Israel yesterday following a dispute between Rodav and Apax.

Rodav's predecessor Zehavit Cohen, who stepped down in October 2011 following the summer's social protests that were focused on perceived high prices of dairy products, still serves as Apax Israel CEO. However, Tnuva's managers have been asked not to talk directly to her. A similar request was given to Psagot Investment House Ltd. managers, where Cohen also stepped down as chairman.

Market sources believe that the dispute, which led to Rodav's resignation, revolves around Tnuva's sales arrangements.

It is now five years since Apax acquired a controlling stake in Tnuva and because of this time span and new regulatory restrictions, the fund is expected to sell the food company within the next two years.

Since Rodav took over as chairman, he has led far reaching changes at Tnuva. He closed the company's factory in Romania, which was losing hundreds of millions of shekels. He was also seeking to streamline activities by consolidating operations and reducing headquarters staff levels.

Some of the measures he sought to lead encountered strong opposition from the workers committee, due to a work dispute with the company, and employees' demands for a new agreement giving them large benefits. Workers were refusing to implement streamlining measures before signing a new agreement.

Tnuva workers committee chairman Ahiav Simhi told "Globes," "Rodav probably didn't deliver the goods. What is a difference of opinion on professional matters? Things weren't working at Tnuva in full harmony. Rodav came to work. He wasn't suitable and said goodbye."

Tnuva said that until a new permanent chairman could be appointed Dr. Shmuel Even, a member of the board, would serve as temporary chairman.

Sources inform "Globes" that Even's appointment was not made with the approval of Apax Partners and the other shareholders - the kibbutz movement and Mivtach Shamir Holdings Ltd. (TASE:MISH).