• Business Dilemma:
  The BOT tender published by the Israeli government for the Jerusalem light-rail network (Jnet), included taking over the existing Red Line (14 km, 23 stations, one depot); an extension of the Red Line (8 km, 12 stations, one depot); and construction of the new Green Line (20 km, 41 stations, one depot) – all while operating and maintaining existing services. TASC assisted an international consortium of a leading Israeli civil-engineering company and a Spanish rolling stock and system manufacturer in a bid for the takeover, expansion, operation, and maintenance of Jnet. Following completion of a five-year multi-stage construction period, the consortium would be entitled to a 20-year operating and maintenance period. To finance over 5B NIS of construction costs, a multi-currency financing package of over 3.5B NIS was required

• Process:
  The Consortium hired TASC’s Finance team to advise on all project stages from bid submission and award to financial close. Our team built and negotiated a financing plan based on non-recourse project financing for the entire project term. The final financing agreement included multiple NIS and EU tranches totalling over 3.5B NIS and was fully committed by Israel’s largest bank along with Israeli institutional investors and other banks

• Strategic Solution & Impact:
  The consortium was awarded the concession after a competitive bid in Q4 2019 and financial close was reached on schedule in Q4 2020. Construction work is ongoing and TASC continues to support our clients in project implementation

For more information: Tom Maurice, Tom.Maurice@tasc-consulting.com

• Business Dilemma:
  Our team was asked to advise a group of private-equity funds in a tender for the purchase of a controlling stake in Israel’s telecom market leader, which was facing a rapidly changing market

• Process:
  Our team reviewed the Israeli telecommunications market – fixed telephony (local & intl.), cellular communications, datacom, pay-TV, and Internet – creating projections for developments in each market, including the deregulation of key market components. Using the market projections, TASC consultants designed and built a complex DCF financial valuation model that allowed investors to assess the impact of the changing trends in the various markets in which the company operated. After structuring a bid strategy exploiting the investors’ relative strengths, our team assisted the group in negotiations with the seller

• Strategic solution & impact:
  Based on TASC’s market company analysis, our clients submitted the winning bid for the tender and gained control of the company

For more information:  Ilan Schory, Ilan.Schory@tasc-consulting.com

• Business Dilemma:
  TASC was commissioned by a consortium of five lenders to value the company’s equity, which was being used as collateral for debt provided by the lenders in connection with the company’s acquisition

• Process:
  The process included a review of market trends in the company’s various business segments, focused on the increase in competition post-reduction of import tariffs, and the entry of “private label” brands into the market. Also, an evaluation of the Company’s business plan and financial status was undertaken, validating the ability to meet its five-year business plan, and a financial model was constructed to evaluate various scenarios for the company’s expected cash flow. Alongside this, a determination of the company’s weighted-average cost of capital (WACC) was performed and a final valuation was determined

• Strategic Solution & Impact:
  Examination of the company’s value showed various gaps in the securities offered to the lenders. Accordingly, the financing plan was altered by the lenders

For more information: Yarden Shtrozman, Yarden.Shtrozman@tasc-consulting.com

• Business Dilemma:
  Our client had purchased a large holding of IDBD’s bonds when the company was facing a severe business downturn that led to a forced debt restructuring and change in control. Our team was commissioned to help maximize the value of our client’s holdings throughout the debt-restructuring process

• Process:
  The process included multiple valuations of each of IDBD’s holdings (Cellcom, Shufersal, Israir, etc.) based on market-multiple analysis and DCF projections aimed at assessing both IDBD’s ability to service its debt and the value of such debt under various restructuring options. Our team also advised on the negotiations for debt restructuring and submitted various reports and financial opinions to the courts and bondholders’ committees

• Strategic Solution & Impact:
  An agreement for a new debt structure was signed with the new IDB Group owner and our client’s bond value increased dramatically

For more information: Daniel Zinger, Daniel.Zinger@tasc-consulting.com