Israeli shopping mall and office giant Azrieli Group (TASE: AZRG) has made a non-binding offer to acquire real estate company ZMH Hammerman (TASE: ZMH) at a valuation of NIS 635 million, representing a 5.7% premium to the offering. The company’s market value (600 million shekels). This comes after the completion of Melisron Corporation’s (TSX: MLSR) acquisition of real estate developer Aviv Real Estate Development and Management Ltd. From Aviv & Co. Real Estate Group 1963 Ltd. Last week.
The Azrieli Group proposes a reverse triple merger in which the Azrieli Group, controlled by the Azrieli family, will purchase all public and financial institutions holdings in ZMH Hammerman (56.7%) and thus acquire control of the company. The company’s controlling shareholders (the Chaim Feiglin family and the Ben Abraham family), who own 45.3% of its shares, will be able to sell 10% to the Azrieli Group, meaning that the Azrieli Group will own two-thirds of its shares. ZMH Hammerman at most. The Azrieli Group also states that Chairman Ran Ben Avraham and CEO Haim Feiglin will remain directors of the company and shareholders.
The offer is subject to due diligence, negotiations, the signing of a binding merger agreement, and obtaining approval from the Competition Authority and ZMH Hammerman bondholders. ZMH Hammerman has listed bonds worth NIS 326 million, which are expected to continue trading after the merger.
Poor performance
Negotiations for the deal come against the backdrop of significant underperformance of ZMH Hammerman shares this year. Its share price rose by 10.2%, while the Tel Aviv Construction Index rose by 26%.
ZMH Hammerman builds mainly in Tel Aviv, Lod, Ramat Hasharon, Ramat Gan, Nahariya, Haifa, Netanya, Hadera, and Karmiel. It includes more than 6,000 residential units in the planning and construction stages, and specializes in mixed use: residential, offices and commercial spaces.
Azrieli Group President Dana Azrieli said: “We have been studying the possibility of entering the residential real estate sector in Israel for a long time. As the largest real estate group in Israel, we are committed, especially at this time, to continuing to build the state and initiating projects in the group’s areas of activity, out of belief in the Israeli economy.” And the State of Israel.”
Haim Feiglin said: “The Azrieli Group’s decision to enter the residential business represents an expression of confidence in the strength of the Israeli economy and in the Israeli residential real estate market. Subject to the completion of this move, we, the current controlling shareholders, will continue to lead and develop the company as directors and as partners with the Azrieli Group in the coming years.” “
Published by Globes, Israel Business News – en.globes.co.il – on November 3, 2024.
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