Luzon Real Estate announced tonight (Tuesday) the summons to the shareholders’ meeting to approve the merger with the digital platform for loans between individuals and businesses Tria. According to the summons to the meeting, which will take place on May 17, the merger will take place at a value of NIS 320 million (before the merger) to Trea, and Tria’s shareholders will hold 72.5% of the merged company’s shares.
The announcement of the convening of the meeting constitutes a significant step in completing the merger and the entry of Trea into the Tel Aviv Stock Exchange. As a result of the completion of the merger and as soon as it is completed, as long as it is completed, you will hold Luzon Group Approximately 19.08% of the issued and paid-up capital of the company and will be entitled to appoint one director on its behalf, as long as it holds more than 5% of the issued and paid-up capital of the company, and whoever will be appointed under the agreement will be Amos Luzon.
To this end, the controlling shareholders of Trea – Eyal Elhiani, Assaf Shloshe, Varda Lusthaus, Pierre Yosef Basniano (through Universal Capital Holdings) and Eli Gabriel of the Luzon Group entered into a shareholders’ agreement that will regulate the legal relationship between them. Tria asked the Capital Markets Commissioner, Dr. Moshe Barkat, to approve the chairman and CEO of Luzon Real Estate, Amos Luzon, as the controlling shareholder in the final chain of the Luzon Group, Pierre Basanino, and Eli Gabriel as joint controlling shareholders in the company at this time. The approval has not yet been received.
The other shareholders in Luzon Real Estate, who currently hold approximately 30.44% of the issued and paid-up capital of the Company will hold approximately 8.2% of the issued capital of the merged company after the merger. , The public will hold about 15.6% of the company’s capital.
Tria revenues grew by 54% in 2021
Tria P2P was founded in 2014 by Assaf Shlosha, Eyal Elhiani and Verde Lusthaus as a private company. Since its inception, the company has been operating in the field of financial technology, ie crowdfunding, and as part of its activities, the company operates an Internet platform, enabling direct meeting (P2P) between borrowers and lenders resident in Israel. As of December 31, 2021, the company provided credit totaling approximately NIS 6.5 billion to private and business borrowers. The company’s profits result from the collection of fees for the use of the platform, both from the lenders and the lenders. The commissions charged by the company from the lenders on average are about 3.2% and the commissions charged from the lenders are about 0.5%.
As part of the convening of the meeting, Tria published an outline with its results for 2021, which indicate significant growth in activity: the company’s revenues amounted to NIS 70.7 million, an increase of 54% compared to revenues of 45.8 in 2020 and an increase of 28% compared to revenues of 55.4 million Shekel in 2019, pre-Corona crisis. The company’s net profit in 2021 was NIS 479,000, compared to a loss of NIS 14.5 million in 2020. In the years before the corona, 2019 and 2018, the company recorded a profit of NIS 6.6 million and NIS 11 million, respectively.
The company’s credit portfolio increased by 23% and amounted to NIS 2.81 billion as of the end of 2021, compared with NIS 2.28 billion at the end of 2020. About 92%) is backed by some kind of security.
In the past year, Tria Fintech, a sister company of Tria, has signed a strategic agreement with Bank Leumi to develop and adapt the bank’s mortgage system.
Shahaf Erlich, CEO of Trea, said: “We at Trea are taking a significant step today on the path to completing the merger and turning it into a public company. The completion of the merger will expose investors in the Tel Aviv Stock Exchange to one of the growing and advanced investment channels, will diversify Tria’s sources of financing and will allow us to continue to grow its operations in general, and in the field of mortgages in particular. “