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The deal in question consists of several parts. In the first phase, Aluma will purchase 25% of the company’s shares for NIS 70 million, and will receive an option to acquire 25% within up to a year and a half. That is, until August 2023. In such a case, Gas Yagel will also adopt a dividend policy of distributing 50% of the net profit to shareholders each year. In case Mira and Aluma do not exercise the option, Avitan will be able to purchase Aluma’s holdings back at the same company value, plus interest of 15%.
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Three owners of the Aluma Foundation, from the right: Uri Yogev, Yinon Yogev and Molly Rabina
(Shlomi Brentl)
Aluma will have the option of appointing half of the directors in the company and will also receive minority rights until the option is exercised. In addition, Avitan will undertake not to oppose the company’s IPO, if Aluma chooses to initiate such a move. Avitan also undertook to repay all the company’s debts until the transaction is completed, as well as to provide it with a loan of NIS 5 million at the date of completion of the transaction.
Gaz Yagel holds a 12% share of the market for LPG (cooking gas), and is considered the largest in the field after the companies of the fuel companies Pazgaz, Amishragaz and Dorgaz. The company has dozens of branches nationwide, from Acre in the north to Dimona in the south. The company specializes in the construction of central gas systems in residential and office buildings, and it regularly accompanies tens of thousands of customers. LPG for private, institutional and industrial consumers. In addition, Gas Yagel stores 400 tons of LPG in reserve at EPA facilities in Ashkelon.
The company supplies gas to customers through a fleet of 11 tankers, dozens of trucks and dozens of service vehicles.
Most of the company’s revenue comes from the institutional market. Customers in this segment include the Ministry of Defense, the Dead Sea Works, Clalit Health Fund hospitals, IMI plants, Yamit 2000, the Albad wipes manufacturer, the Phenicia factory in Yeruham, as well as various shopping centers and malls. The company also accompanies large construction projects such as Those of the Damari Company, the Gabay Group, Donna, Acro Real Estate, Almond Tree and more. The company purchases the gas, like some of its competitors, from Paz’s gas station and PZA.
Today in Israel there are 4.2 million consumers of cooking gas. The industry’s revenue turnover is NIS 3 billion per year, as of 2017, so that Yagel’s revenues are estimated at NIS 360 million per year.
Aluma, headed by Uri Yogev – former head of the budget department and director of the Government Companies Authority – Yinon Yogev and Molly Rabina, is the third infrastructure fund on the stock exchange. The fund completed its IPO last November, raising NIS 80 million at a value of NIS 176 million, so it began trading at a value of NIS 256 million. Today, the fund’s market value is NIS 260 million.
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