Sources inform ''Globes'' that Bronfman Fisher Investments Ltd., owned by Matthew Bronfman and Shalom Fisher, has made progress in its negotiations to acquire f Olimpia Real Estate Holdings Ltd. (TASE: OLMP) . Market sources predict that a binding contract will be signed soon.
Bronfman Fisher will carry out the deal through Isralom Properties Ltd. (TASE:ILOM). Isralom will acquire 50% of Olimpia Building Investment and Development (1994) Ltd., a private company owned by company chairman Oscar Katznelson, CEO Yossi Bar, vice chairman Alex Goor, and VP Operations Haim Guterman. Olimpia Building owns 40% of Olimpia Real Estate.
Negotiations are reportedly being held at a company value of NIS 550-600 million for Olimpia Real Estate, which gives a price tag of NIS 120 million. Rumors about progress in the negotiations have boosted Olimpia Real Estate’s share more than 10% on unusually heavy trading.
Isralom wants Olimpia because of its extensive real estate business in Eastern Europe, where it operates through Olimpia Euro Construction BV and Nanette Real Estate Group NV (AIM:NAT). Meshulam Levinstein Contracting and Engineering Ltd. (TASE:LEVI), Nanette’s other controlling shareholder, is benefiting from the negotiations, even though it is not a party to any deal. Levinstein’s investors believe that Nanette will prosper from a takeover of its parent company, which will benefit Levinstein in turn.
Published by Globes [online], Israel business news - www.globes.co.il - on July 24, 2007
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