Properties and Building upgrades the price in its takeover bid for Gev Yam shares from NIS 37.5 to NIS 41 per share. The company, managed by Doron Cohen, who also serves as the CEO of DSKS, reported to the stock exchange on the new price and extended the process by six days so that it will end on February 28.
Read more in Calcalist:
The purchase offer for properties and a building follows a transaction to purchase Aharon Frenkel’s shares in Gev Yam. The purchase offer is required as a condition for completing the transaction. As part of the tender offer, Properties and Building offers to purchase approximately 5% of Gev-Yam shares. The new price comes after Segev Yam recently distributed a dividend of NIS 400 million.
The initial price signaled that the way to approve the bid is not necessarily going to be simple for properties and building, and it will have to put a hand in the pocket, to improve the bid. Now, after the offer has been improved, it seems that the chances of the takeover bid being approved have increased significantly. However, if the offer is not approved, the deal with Frenkel will be canceled – something that could drag the Gev-Yam share into declines, having greatly enjoyed the control that has developed in the company.
One of the most interesting players in the process is Maurice Wilner, who owns 5.12% of the stock and has only recently been revealed as a shareholder. In an interview with Calcalist, Wilner said that “Gev-Yam is better than any other company I have thought of buying its shares from.” From his words it can be concluded that he will not support the deal or at least try to improve positions. However, the takeover bid can be accepted even without it, if Properties and Building succeeds in obtaining 5% of the votes of the free shareholders (counting about 18%).