At the end of a competitive procedure, Keystone is preparing to close down the acquisition of up to 60% of Egged’s shares. Keystone deposited an advance of about NIS 350 million, completed a financial closure to finance the deal and met Egged’s conditions for the purpose of declaring it the winner of the competitive process.
The transaction is conditional on the final approval of the Egged shareholders’ meeting, which will take place towards the end of May 2022 and the receipt of regulatory approvals.
Navot Bar, CEO of Keystone: “Public transportation is one of the critical national infrastructure industries for the functioning of the economy, and its importance for the development and growth of the Israeli economy is growing. Despite the benefits of investing in infrastructure, until recently these investments were reserved only for a limited and concentrated number of players. Investing in national and quality infrastructure like Egged is now becoming accessible to the general public through Keystone.
“Keystone’s offer to purchase shares in Egged, Israel’s national transportation company, was made after an in-depth and thorough examination during which we were exposed to a fine and quality company, with proven capabilities and quality manpower, from the employees and founders to the management team. As part of a realistic analysis and out of a responsibility to bring value to its shareholders, Egged’s pricing is a testament to the professionalism, capabilities, knowledge and experience of Egged, its management, employees and founders.
“The demands made by Egged’s management immediately after the results of the competition were published were acceptable and understandable to Keystone, and evidently Keystone was able to meet them and prove its capabilities in a very short time. Keystone brings Egged financial strength and strategic capabilities Its shareholders and Keystone investors. ”
Keystone established a designated corporation for the purpose of purchasing Egged shares, which entered into a financing agreement with a banking consortium led by Bank Leumi and Bank Mizrahi, to which equity will be injected by the partners in the designated corporation. The financing agreement regulates the receipt of loans amounting to up to NIS 1.44 billion, which constitutes the balance of the amounts required for the corporation designated to purchase Egged shares.
The designated corporation also signed the agreement to purchase 50.01% to 60% of Egged shares, which also includes put options for Egged shareholders to sell the balance of their holdings in it, according to the same company value according to which the consideration for Egged shares was determined, in accordance with the agreement.
Keystone is an Israeli REIT fund for infrastructure investment established in 2019, against the background of the recommendations of the Committee for the Promotion of the Establishment of Traded Funds for Investment in Infrastructure. Keystone was issued about a year ago and is traded on the Tel Aviv Stock Exchange, raised about NIS 1.4 billion (in capital and debt) which it has invested and still invests in a diversified and diversified infrastructure assets portfolio. Since its establishment, Advanced IPM in Israel, Sunelpower Renewable Energy Company, a global fiber optic deployment project, and a company that owns charging stations throughout Spain. By Keystone and its people in a way that allows its investors to get a decent return, and a current revenue stream.
Keystone’s founders are Roni Biram (who serves as chairman of the board), Dr. Navot Bar (who serves as CEO and director) and Dr. Gil Deutsch.
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