Azorim Investment, Development and Construction (TASE: AZRM) is continuing the sell-off of its hotel business. Azorim Tourism Ltd. jointly owned by Azorim and its parent company, Boymelgreen Capital Ltd. (TASE:BMGN), signed a memorandum of understanding (MOU) for the sale of all its holdings in the Sheraton Moriah Hotel in Eilat to local businessman Asher Gabai and his partner Benny Zerach for NIS 141.5 million.
Azorim Tourism signed the MOU for the sale and due diligence examination with companies owned by Gabai and his partners - Oron Hotel Holdings and Tourism Ltd. and/or Astral Hotels Ltd., or a related company. Astral Hotels has 450 rooms in four hotels in Eilat.
The deal is latest in a string of sell-offs by Azorim to boost the company's cash flow by hundreds of millions of shekels and generate tens of millions of shekels in profit. The proceeds are likely to be used by Boymelgreen Capital to repay the loans it took and the debt it raised to finance its acquisition of Azorim.
A month ago, Azorim Tourism and several other partners signed a contract for the sale of the City Tower Hotel in Ramat Gan to businessman Yitzhak Toledano for NIS 150 million. The group is currently in advanced talks with a consortium of buyers headed by Amnon Shiboleth for the acquisition of a 50% stake in a number of hotels owned by Azorim Tourism. An agreement is expected in the next few weeks.
Published by Globes [online], Israel business news - www.globes-online.com - on September 15, 2008
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