Markstone Capital Partners Group LLC has completed the acquisition of 24% of Elran (DD) Real Estate Ltd. (TASE:ELRE) from Elran Investments Ltd. (TASE: ELIN) for NIS 80 million, reflecting a company value of NIS 315 million for Elran Real Estate.
Elran Investments is controlled by three members of the Dankner family: co-chairman and CEO Gad Dankner, co-chairman Dori Dankner, and Dan Dankner. The company's stake in Elran Real Estate has fallen from 63.6% to 41.4%. Elran Investments will report a pretax capital gain of NIS 26 million on the sale.
Gad Dankner said, "The combination of the two companies - Markstone's global connections and financial know-how and Elran's international real estate and administrative infrastructure and experience - will enable the company to expand in the markets where it operates and to enter new markets with high growth potential."
Markstone bought 5% of Elran Real Estate for NIS 16.5 million and 19% for NIS 63 million. Markstone was also given a 30-month option to buy an additional 18.5% of Elran Real Estate: 11% at a company value of NIS 315 million, and 7.5% at a company value of $100 million dollar.
Published by Globes [online], Israel business news - www.globes-online.com - on January 31, 2008
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