Teddy Sagi blows up negotiations for a huge investment in a collector

by time news

Teddy Sagi (Flash Photography 90 / Yossi Zeliger)

A month and a half after it began contacts with businessman Teddy Sagi, Aspen Group announces today that the negotiations have exploded and at this stage Zagia will not invest in it. In response to the company’s announcement, the share is down 5%.

About a month and a half ago, Aspen reported that businessman Teddy Sagi is in contact with her ahead of a huge investment of more than NIS 600 million. The investment was supposed to reflect a price 12% higher than the share price that day on the stock exchange and naturally, the negotiations had a good effect on the company which was supposed to have a strong financial backing.

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In negotiations between the parties, Sagi was supposed to invest the huge amount in a convoluted deal in which Aspen was to inject about NIS 40 million and become a stakeholder in it, after which he was to receive an option to invest the rest in Aspen BV, which coordinates the group’s operations in Europe.

The negotiations between Sagi and Aspen have even reached a point where a non-binding agreement has been signed which is probably a code name to remember things that have no real meaning other than raising principles for making a deal in writing.

Beyond Aspen’s Israeli operations (9 hotels and 16 income-producing properties) is an operation in Europe and especially in the Netherlands, where it owns almost 20 properties worth almost NIS 1.5 billion, while Sagi was interested in this activity.

It is not clear why the deal between Sagi and Aspen exploded, but capital market sources claim that businessman Roni Tzarom, who owns the majority of the shares (45%), pressured her when he asked for a higher company value than Sagi agreed to pay and since no compromise was found.

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