For the first time since the issuance of the infrastructure and construction work company Danya Cebus In February 2021, its controlling shareholder, Africa Israel, will begin to realize additional parts of its holding. On Tuesday this week, Africa Israel sold to classified investors about 4.58% of the shares of Danya Cebus, in exchange for an amount of NIS 107 million.
As part of the transaction, Africa Israel sold the shares at a price of NIS 75.2 per share, which represents a discount of 3.8% in relation to the closing price on the day before the sale.
Africa Israel is a privately held company wholly owned by the group Lapidot Capital Of Yaakov Luxenburg (80%) and members of the provident funds and study funds of Altshuler Shaham (20%), who purchased it as part of a debt arrangement.
In February this year, the subsidiary Danya Cebus completed an initial public offering on the stock exchange, in which it raised NIS 146 million at a price of NIS 58 per share, which gave the company a value of NIS 1.8 billion after the money. Currently, the company’s market value is NIS 2.41 billion – an increase of about 30% of the issue.
Following the current sale, Africa Israel’s holding in Danya Cebus decreased to approximately 75%. According to the controlling owner, Lapidot Capital, the transaction is expected to increase its equity in the financial statements for the summary of 2021 by approximately NIS 65 million.
Accumulated orders of NIS 11.6 billion
Last week, Danya Cebus published its financial results for the third quarter of 2021 and the first nine months of the year. The company ended the third quarter with revenues of NIS 1 billion, reflecting a growth of 7% compared to the corresponding quarter last year.
The profit from the company’s continuing operations amounted to NIS 30 million in the third quarter and reflected a slight growth of 1.5% compared to the corresponding quarter last year. In the sum of the first nine months of 2021, revenues grew by about 10% to NIS 2.93 billion, while profit from continuing operations grew by 16% to NIS 86 million.
The increase in revenues in the third quarter and the first nine months was due, among other things, to the beginning of the recognition of the Ashkelon Wine City project. As of the end of September 2021, the company’s consolidated order backlog was NIS 11.6 billion.
Simultaneously with the publication of the reports, the company announced that it would distribute a dividend of NIS 30 million at the beginning of December. Meanwhile, its stock has been showing a adjusted dividend yield of about 46% since the start of trading on the stock exchange.
Agreement with the controlling shareholder Lapidot Capital
Following the reports, and even before the report on the sale of the shares, Danya Cebus, managed by Ronen Ginzburg, Because about three months ago it entered into a conditional agreement with the controlling shareholder Lapidot Capital, under which Danya Cebus will be transferred all of Lapidot’s full holdings (25%) of Nativ La’ir, which serves as a franchisee in the Laneidim project, as well as Lapidot’s full rights and obligations. Reimbursement of expenses incurred by Lapidot in connection with the project, and additional accounting as determined between the parties.
The remaining rights in the franchisee are held by the companies Electra Franchise, Electra Afikim and Nehor Transport Routes, in equal parts (25% each).
The concessionaire is the winner of a tender issued by the State of Israel for the financing, planning, construction and operation of the Gush Dan highway system. As part of the project, the franchisee will plan, finance, build and operate, among other things, parking lots and parking at the Mevo Ayalon and Shefayim interchanges, as well as a transportation system to various stations, including Gush Dan, a network of 75 km long toll roads along Route 20 and Route 2, Systems Toll and collection and various roads that will be connected to the parking lots, over a concession period of about 14 years (including a construction period of 4-3 years).
Subject to the financial closure of the project, the franchisee will be entitled to payments from the client of approximately NIS 2.5 billion during the franchise period as well as additional receipts dependent on demand. Completion of the transaction between Danya Cebus and Lapidot is subject to conditions precedent, including approval by the Inter-Ministerial Tenders Committee of the Ministry of Finance and the Ministry of Transportation to replace Lapidot in the company as a shareholder in the franchisee, and to approve the general meetings of Lapidot Capital and Danya Cebus.
According to Danya Cebus, the concessionaire applied to the inter-ministerial tenders committee of the Ministry of Finance and the Ministry of Transportation for approval to replace the torches in the company. On Tuesday, the committee received a reference, in which additional information was requested, which the company, together with the franchisee, is working to complete.
It should be noted that as of the date of this report, there is an agreement between Danya Cebus and the franchisee that Danya Cebus will perform some of the civil engineering work within the framework of the project. According to the aforementioned agreements, Danya Cebus’ share in future works will include the construction of a parking and parking lot in the Shefayim area and the civil engineering work in connection with Access 541, totaling approximately NIS 903 million. However, as of today, the performance agreements between the franchisee and Danya Cebus have not yet been finalized.