Partial success for the yielding real estate company Big shopping centers In the tender offer submitted for the purchase of the entire public holdings in the subsidiary company, Efi Properties. On Tuesday, Big reported that it had received acceptance notices for shares that constitute 18.9% of the capital of Epic Propertiesout of 34% of the company’s shares that it requested to purchase.
She also noted Big that it will purchase all of the shares for which acceptance notices were received and will increase its holding in Efi Properties from 66% to 84.9%. The majority of the shares were purchased by Big from the Mega Or real estate company of Tzachi Nahmias, which until now held 13.5% of the shares of Efi Properties and sold them all as part of the purchase offer.
mega light, which until now also held 8.7% of Big’s shares, reported that following the completion of the purchase offer, its holding in Big will increase to 15.8%. In addition, Mega Or stated that according to the current price of Big shares on the stock exchange, it is expected to record in its reports for the third quarter of 2022 a profit of approximately NIS 172 million as a result of the exchange of shares.
Revaluation gains of up to NIS 370 million in the second quarter
Epic Propertiesunder the leadership of CEO Avi Barzilai, operates in the field of yielding properties in Israel and in the development of residential real estate and yielding properties in Eastern Europe. The company owns real estate worth NIS 3.9 billion in Israel and NIS 9.4 billion in Eastern Europe.
Last month, as mentioned, Big offered to purchase all of the shares of Efi Properties that it does not own, as part of a stock transaction. The exchange ratio in the offer included the issuance of 0.38 Big shares for every one share of Efi Properties that will be purchased.
The investment is intended to expand BIG’s exposure to two additional and complementary areas for it – offices in Israel and the profitable and entrepreneurial real estate sector in Eastern Europe. In Eastern Europe, Efi Properties operates in the areas of shopping malls, offices, housing for rent and apartments for sale, mainly in Romania, Poland, the Czech Republic and Serbia, while Shelbig is active in the field of shopping malls and logistics in Serbia and Montenegro.
Epic Properties It has not yet published its financial statements for the second quarter of 2022, but following the purchase offer it has updated, among other things, that based on draft valuations for its assets, there is an increase in the aggregate fair value of those assets. As a result of this, it appears that the company may present in its quarterly reports revaluation gains totaling NIS 300-370 million (before tax) for its share of these assets.