Just before the end of the civil year – the deal of the year in Gev Yam was closed: this weekend (Saturday), representatives of Equity Finance, which is owned by businessman and entrepreneur from Monaco, Aaron Frenkel, and the real estate company and building from Discount Investments, signed an agreement. From Equity Finance, it will acquire its holdings in the income-producing real estate company Gev Yam at a rate of 37.22%, as part of a public purchase offer that Properties and Building will make, in exchange for an amount of approximately NIS 3.1 billion. This is one of the largest private transactions in the history of the Israeli capital market.
According to the agreement reached between the parties, the company owned by Frenkel will continue to hold back shares until the end of April 2022 and will enjoy future cash flow, and at the end of the period, assets and building will become the controlling owner of the company.
Both parties can point to a particularly successful transaction: on the one hand, Frenkel’s Equity Finance sells its holdings in an amount that reflects a 100% profit on its investment, a profit of about a billion and a quarter shekels, resulting from the said basic consideration, dividends and currency differences, which is a nice result in the real estate industry. . On the other hand, the shareholders in Discount Investments – the Zalkind family, Tzachi Nachmias, Rami Levy and their partners – establish their holdings in the group’s diamond, the real estate company Gev Yam.
Photo: Guy Madur
Frenkel’s Equity Finance began its journey in Gev Yam as a long-term investment and in August last year acquired 8.6% of the company’s shares for NIS 380 million. Later, in October, after increasing its holdings in the company to 10.3%, it made another purchase of Gev Yam shares from Migdal for more than NIS 800 million, which brought its holdings in the company to 25.4%. Subsequently, in August 2021, it purchased shares for NIS 87 million and increased its holdings to 29%, and then acquired an additional 3% from Gazit Globe for NIS 129 million, which brought its holdings in the company to more than a third of its shares. The transaction was accompanied by the Harel insurance company, which organized a long-term financing syndicate of about 10 years.
Frenkel is a mysterious and intriguing figure: he owns the international company Loyd’s Investment, which invests in aviation, real estate and energy, and also owns a huge company that specializes in selling and leasing aircraft and selling executive jets. He also owns Equity Finance, which invests in a number of real estate properties around the world.
Frenkel is the president of the Jewish community in Monaco and he donates huge sums to philanthropic organizations such as Yad Sara by Uri Lupolianski and the help and healing of Elimelech Firer, charities, hospitals and is involved in various social initiatives in Israel and around the world.
Upon signing, Frenkel said: “I wish the buyers, the real estate and construction company and its shareholders great success. Gev Yam is a company with significant potential for improvement, and I am sure that the buyers knew how to realize the enormous potential inherent in it. “
Equity Finance was represented by attorneys Eitan Shmuel of Lipa Meir and Shirel Gutman-Amira of Agmon Rosenberg Hacohen, and Properties and Building was represented by attorneys Esther Koren, Ran Ben-Ari and Shai Hager of Gross.