Sometimes less is worth more. Last week, Haim Katzman sold a stake in his shares in Norstar – the public company he controls, through which he controls Gazit Globe – to Israel Canada, which is controlled by Barak Rosen and Assi Tochmeier. Katzman sold 11.5% of Norstar for NIS 192 million, and a 40.6% holding decreased to 29.1%.
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But today his reduced stake in Norstar is already worth more than the stake he held on the eve of the sale. The agreement on the sale was reached last Wednesday night, after Rosen informed Katzman that Israel Canada had collected Norstar shares on the stock exchange and reached a 10% holding, so they should meet.
At the end of this meeting, it was agreed that Katzman would sell shares to Israel Canada. On Tuesday, the price of Norstar’s share on the Tel Aviv Stock Exchange was NIS 32.8, which resulted in Katzman’s holdings at the time, 40.6%, a value of NIS 441.7 million.
Since then, the Norstar share has jumped 41.7% and its price at the close of trading yesterday was NIS 46.5. This price results in Katzman’s reduced holdings, 29.1% of Norstar, a market value of NIS 458.6 million.
Thus, Katzman already earns NIS 16.9 million on paper. To this must be added the NIS 192 million that Israel Canada will receive from the sale, and in total, Katzman records a profit of NIS 208.9 million in less than a week.