The investors of Mevanah are less fond of the deal forged in the shadow of DSK’s leverage. On the other hand, Properties and Benin, Gev Yam and DSK are jumping on the stock market
The shares of Properties and Building jump by about 15% on the stock exchange in the background of the announcement that DSKSH is conducting negotiations for a merger with Mebane. As part of the initial contacts, DSKSH shareholders will receive shares of Mebane traded on the stock exchange.
The terms of the transaction have not yet been agreed upon and therefore there is no certainty of their completion, but in the market DSK’s investors seem satisfied when the stock of the parent company Properties and Building jumps by about 15%, DSK’s rises by 11%. On the other hand, Mebane’s share loses about 4%.
David Zbiza, CEO of Mebane, squints at the properties of DSKSH, but the investors in Mebane do not like the deal in view of the leverage of properties and the building that owns the HSBC building, Gav Yam and also owns the Cellcom company. DSKSH is owned by Mega Or (30%), the Zelkind brothers through Elko (30%), Rami Levy (11%) and Chen Lamdan (5%).
DSKSH is in the process of realizing assets in order to reduce leverage and is working to sell its holding (35%) in Cellcom and Alron (60%). The level of leverage of the subsidiary Property and Building increased with the increase in the financial debt taken by the company to finance the transaction for the purchase of Gav Yam, and from the holding in HSBC Together with the drop in the market price of Gev-Yam shares by about 20% in the past year, Manaveh is interested in acquiring Gev-Yam, which deals in the profitable real estate sector and trades according to a market value of NIS 6.1 billion.