Negotiations between the yielding real estate company Aspen Group, which is controlled by Roni Tzarom, and the billionaire Teddy Sagi, have been stopped.
In a report to the stock exchange, Aspen stated that “the negotiations that took place between the company and the Sagi Group, as defined in the previous reports, have not matured into a binding agreement due to commercial gaps.”
Last month, Aspen said that it had signed a memorandum of non-binding principles regarding cooperation with Teddy Sagi, totaling about NIS 610 million.
As part of the memorandum of principles, the Sagi Group’s investment in Aspen and its subsidiary, Aspen BV, which centralizes Aspen’s operations in Europe, was agreed upon. As part of the cooperation between the parties, they will work to flood value in the subsidiary, Aspen BV, and will promote the issuance of its shares on one of the European stock exchanges in the next year and a half.
As part of the agreement between the parties, it was agreed that the Teddy Sagi Group will purchase as part of a private placement about 5% of the share capital of Aspen Group, at a price of NIS 12.1 per share, and a total of NIS 40.5 million.
It was further determined between the parties that Aspen BV will allocate 24.99% of its shares to the Sagi Group, and in return Aspen Mashgi will acquire a Cypriot company that owns two real estate properties in Romania, with an estimated value of 60 million euros (210 million shekels) without debts.