The company Aspen Group announced this evening (Monday) that the controlling owner Roni Tsarum has entered into a memorandum of understanding for the sale of control of the company with a huge upside.
Tzarum, who owns 44.74% of Aspen’s shares, entered into a memorandum of understanding with Shlomo Akrish, Ibn Charles Newman and Australia Israel for the sale of his entire holdings in the company for NIS 485 million and an additional consideration of NIS 15 million depending on the market value of the company’s shares until the end of two and a half years from the date the signing of the agreement. The transaction reflects a price of NIS 17.3 per share.
Asfek is traded on the Tel Aviv Stock Exchange according to a company value of approximately 430 million shekels, so the value of the holdings of Tsarom at issue is estimated at approximately 192 million shekels, so the transaction reflects a 135% premium over the market price.
Upon signing the agreement, as much as it is signed, an advance of NIS 50 million will be paid in two equal payments. At the time of the Memorandum of Understanding, the purchasers deposited with a trustee a bank check of NIS 5 million to be held in trust for the benefit of Tsarum and the purchasers. The purchase depends on the approval of the competition commissioner, when the parties will work to sign a binding agreement by February 9th.
Aspen Group, is a company that operates mainly in the purchase, initiation, rental, management and improvement of income-generating properties that include offices, services, trade, industrial buildings and logistics mainly in Israel and the Netherlands. The company operates from time to time, in accordance with business opportunities in the real estate market, also for the realization of buildings and land in the field of real estate. Recently, the company increased its activity in the field of hotels in Israel through the Pai Siam company. The chairman of the company is Guy Pereg, and the CEO is Scout Harel.
Aspen concluded the third quarter of this year with a net profit of approximately NIS 70.5 million, compared to approximately NIS 2.5 million in the corresponding quarter last year. Revenues in the third quarter from rental fees, management and hotel services jumped by about 17.4% to about NIS 56.6 million, compared to about NIS 48 million in the corresponding quarter last year. The company recently announced a substantial deal with partners, for the purchase of land for the establishment of an automated logistics center at the entrance to Ashdod port for NIS 350 million.
Eben Neuman (along with his brother Ricky), is one of the first shareholders in the Max Stock chain (after the IPO, the others sold their holdings to the extent of approximately 330 million shekels, and in 2021, the brothers teamed up with real estate man Shlomi Akrish and purchased the stock exchange company Man Goren (named later changed to Australia Israel).
Roni Tsarum said: “I feel that the time has come on a personal level to focus my business activities on new areas, especially in the field of technology and its various sub-sectors, and to exercise my holding in Aspen. I want to thank Guy Pereg, Chairman of Aspen, who has been working with me for two decades, to Scout, CEO Aspen and to all the amazing Aspen team in Israel and around the world. Without you, Aspen could not have reached the achievements it has reached. I also want to thank the investors who believed in the company and the team. I am convinced that Aspen will continue to grow, generate value for its owners and conquer new heights. On this occasion, I also wish the buyers and the employees of the company great success in the future. Aspen and its team are very important to me, and they will always be dear to my heart.”
Ibn Neuman and Shlomi Akrish said: “Aspen Group is an excellent company with quality properties in attractive locations. During the coming years, we will work to develop and strengthen the company’s activities, while constantly examining additional acquisitions and expanding the company’s business activities, with an emphasis on Israel.”