It was also reported that in the private allocation, a number of leading institutional bodies took part: Migdal, Fenix, Mor and Menorah. Out of this, the offering is expected to lower the company’s leverage by about 0.75%. The proceeds of the issue will be used by the company to lower its leverage. At the same time, the parent company Norstar will purchase shares in this issue amounting to approximately NIS 34 million, subject to obtaining the approval of the company’s general meeting by a majority of the minority shareholders.
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Haim Katzman, founder and CEO of G City commented on the moves and said: “We are very happy about the further expression of confidence in the company by a number of leading institutional bodies: Migdal, Fenix, Mor and Menorah. We are determined to continue implementing the strategic plan for the sale of assets that are not core assets, along with other moves that together will contribute and continue to contribute to increasing liquidity and reducing leverage.”