Progress in negotiations on the purchase of Frenkel shares in Gev-Yam: The meeting was canceled

by time news

Company Properties and building And the businessman Aaron Frenkel Negotiations between them on the acquisition of Frenkel’s holdings in the company continue Back-sea , And negotiations between the parties have not yet been exhausted. Following the continuation of the contacts and their progress, and the possibility of a breakthrough in the near future, Properties & Building has meanwhile decided to withdraw its request to convene a special general meeting of Gev-Yam shareholders, on the agenda of which three representatives will be elected to the Gev-Yam board.

This morning (Tuesday), Gev-Yam announced the cancellation of the general meeting, which was scheduled to convene at its offices in Haifa at 14:00. In Gev-Yam, they stated that “the meeting is canceled at the request of the shareholders, who requested that the meeting be convened.”

At the same time, Properties and Building and Frenkel agreed that Properties and Building could add one director on its behalf to the Gev-Yam board of directors. This is similar to Frenkel, who is represented on the Gev-Yam board of directors by director Ilan Gipman.

Examines acquisition of 5% of Gev Yam shares

Properties and Building currently owns 44.51% of Gev-Yam shares worth NIS 3.47 billion, and wants to establish control of Gev-Yam, or even acquire full ownership of it. Frenkel currently owns 37.22% of Gev-Yam shares worth NIS 2.9 billion, which he purchased with an investment of NIS 2.2 million.

At the end of August this year, Properties and Building reported that it was examining the possibility of making a special takeover bid, which would be addressed to all Gav-Yam shareholders, in which the company would offer to purchase ordinary Gev-Yam shares, amounting to no less than 5% of the issued capital. However, Properties and Building later updated that it is in contact with Frenkel, for the purchase of Gev-Yam shares from it.

Gev-Yam is mainly engaged in the field of offices for rent, and specializes in the construction and operation of high-tech parks. In addition, the company also operates in the fields of trade and logistics, and has even begun investments in the fields of server farms and residential rental.

The value of investment real estate soared

Gev-Yam ended the first nine months of 2021 with a net profit attributable to shareholders of NIS 695 million, compared with a net profit of only NIS 172 million in the corresponding period last year. The huge gap was generated by income from an increase in the fair value of investment real estate in the amount of NIS 756 million recorded by the company in the first nine months of 2021.

For comparison, in the first nine months of 2020, Gev-Yam recorded income of only NIS 23 million from an increase in the value of its investment property, while in 2020 as a whole, the value of the company’s investment property increased by NIS 109 million. It should be noted that last year’s financial results were heavily influenced by the outbreak of the corona plague, which led to the government’s widespread use of imposition policies.

Gev-Yam has equity attributed to shareholders of NIS 3.2 billion and is traded on the stock exchange at a value of NIS 7.8 billion. It should be noted that according to the Companies Law, properties and a building may increase the holding of at least 45% of Gev-Yam shares only through a tender offer (partial or full), which is addressed to all shareholders.

Thus, the purchase of shares from Frenkel can only be made after the submission of a partial tender offer or as part of a full tender offer. Alternatively, the purchase can be made as part of a merger transaction between properties and a building and Gev-Yam.

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